Esper Warns of National Security Risks in Digital Asset Regulation
Former US Defense Secretary Mark Esper is urging swift Senate passage of the CLARITY Act, calling it a national security bill rather than just a financial regulation measure. He argues that regulatory gaps in digital assets could affect US geopolitical influence and national security, beyond financial market issues.
Esper pointed to China as the biggest strategic threat, saying they are investing in state-led payment systems to bypass US oversight and weaken the dollar's central position. He also highlighted North Korea's use of cryptocurrencies as a key rationale for the bill.
According to Esper, the CLARITY Act could reduce regulatory gaps in digital asset markets and strengthen tools for the US government to respond to illicit financial activity. He emphasized that the bill is not just about investor protection and market rules, but also about building financial infrastructure that can prevent cryptocurrencies from being used to evade sanctions or move illicit funds.