Esper Calls CLARITY Act a National Security Bill

Former US Secretary of Defense Mark Esper has written an opinion piece in the Financial Times urging the Senate to pass the CLARITY Act, which he believes is a national security matter as much as it is a financial one.

Esper warns that weak digital asset rules leave gaps that countries like China and North Korea can exploit against the United States. He notes that China is building state-directed payment systems designed to avoid US oversight and reduce the dollar's role in global finance, calling it 'the greatest strategic threat of our lifetime'.

Esper also points out that groups like the Lazarus Group, tied to North Korea, use crypto loopholes to dodge financial rules. He believes the CLARITY Act would give the US better tools to close these gaps.

The Senate is set to vote on the bill on September 15, after Senate Majority Leader John Thune filed cloture to bring it to the floor for a vote.