Esper Warns of National Security Risks Without US Crypto Regulation

Former US Defense Secretary Mark Esper has urged the Senate to pass the CLARITY Act before its September 15 procedural vote. He argues that delayed crypto rules could weaken U.S. financial and national security.

Esper, who led the Pentagon from 2019 to 2020, says regulated U.S. crypto markets would improve oversight of digital asset transactions. This, in turn, would help preserve Washington's view into financial activity while supporting sanctions enforcement.

The current draft of the bill proposes dividing responsibility for digital assets between the Commodity Futures Trading Commission and the Securities and Exchange Commission. Qualifying digital commodities would generally come under the CFTC, while the SEC would keep authority over tokens and transactions treated as securities.

Esper's security case rests partly on the role of the US dollar in global trade and finance. American authorities can monitor or restrict transactions that pass through banks and payment networks subject to US law, giving Washington tools to enforce sanctions and investigate illicit finance.