Esper Calls CLARITY Act a 'National Security Bill' Amid Threats from China and North Korea

Former US Secretary of Defense Mark Esper has urged the Senate to pass the CLARITY Act, calling it a 'national security bill' that would strengthen American financial power against threats from North Korea and China. Esper, who also serves as a member of the Coinbase Global Advisory Council, argued in an op-ed in the Financial Times on Saturday that weak digital asset rules create openings for these countries to undermine US financial influence.

Espers said Beijing is already investing in state-directed payment systems to sidestep American supervision and erode the US dollar's central role. He also stated that the act would give the US better tools to cut off crypto-specific loopholes used by North Korean actors, such as the Lazarus Group, to avoid US financial controls.

The Senate is expected to vote on the CLARITY Act on September 15. On Saturday, Senate Majority Leader John Thune filed cloture to bring the CLARITY Act to the Senate floor for consideration. Esper emphasized that this bill should be understood and passed with urgency because it addresses a critical national security issue.