Esper Warns of National Security Risks in Unclear Digital Asset Rules
Former U.S. Defense Secretary Mark Esper is urging senators to pass the CLARITY Act, arguing that it's not just a financial services bill but also a national security issue.
In an op-ed published in the Financial Times, Esper wrote that clearer rules for digital assets could improve law enforcement visibility and support sanctions enforcement.
The Senate has scheduled an initial procedural vote on the bill for September 15. The CLARITY Act aims to bring more digital asset activity under U.S. rules, which supporters argue would reduce incentives for crypto businesses to operate through lightly regulated foreign venues.
Esper pointed to North Korea's Lazarus Group as an example of a cyber threat that could be mitigated by clearer rules. He also argued that Chinese payment alternatives could weaken U.S. financial leverage.