Esper Backs CLARITY Act as National Security Priority Amid Crypto Delay
Former US Defense Secretary Mark Esper has weighed in on the CLARITY Act, urging swift Senate action to pass the legislation. In a Financial Times op-ed, Esper framed the bill as essential national security legislation, rather than just financial regulation.
Esper highlighted China's efforts to develop alternative payment infrastructure that would circumvent US dollar supremacy and diminish America's international standing. He characterized this development as an urgent and expanding danger.
The CLARITY Act aims to equip the Treasury Department with enhanced capabilities to close cryptocurrency vulnerabilities exploited by North Korean entities, including the Lazarus Group, which is accused of using cryptocurrencies to bypass US financial sanctions.
The Senate has postponed consideration of the legislation until after summer break, with Majority Leader John Thune scheduling cloture for September 15. However, ethics considerations surrounding President Trump's cryptocurrency commercial connections remain a major hurdle to passage.