Esper Labels CLARITY Act a National Security Bill Amid North Korean Threats

Former US Defense Secretary Mark Esper has called on the Senate to pass the CLARITY Act, labeling it a 'national security bill'. In an op-ed in the Financial Times, Esper argued that weak digital asset rules create openings for North Korea and China to undermine American financial power. He emphasized 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 need for stronger tools to cut off crypto-specific loopholes used by North Korean actors, such as the Lazarus Group, to avoid US financial controls. He noted that the CLARITY Act would extend the Treasury's special-measures authority under section 311 of the USA Patriot Act.

The Senate is expected to vote on the CLARITY Act on September 15. Senate Majority Leader John Thune has filed cloture to bring the bill to the Senate floor for consideration. Esper urged the Senate to pass the act with urgency, stating that 'This is why the Clarity Act...is not merely a financial services bill. It is also a national security bill.'