Esper Calls CLARITY Act a 'National Security Bill' Amid Fears of China, North Korea Threats

Former US Defense Secretary Mark Esper is urging the Senate to pass the CLARITY Act, calling it 'a national security bill' due to its implications on digital asset rules.

In an op-ed for the Financial Times, Esper argued that weak regulations create openings for North Korea and China to undermine American financial power. He stated that Beijing is already investing in state-directed payment systems to sidestep US supervision and erode the US dollar's central role.

Esper also highlighted the importance of cutting off crypto-specific loopholes used by North Korean actors, such as the Lazarus Group, to avoid US financial controls. The CLARITY Act would give the US better tools to do so.