Esper Warns Rival Nations Exploit Weak Crypto Rules, Backs Clarity Act

Former US Secretary of Defense Mark Esper is advocating for the passage of the CLARITY Act in the Senate, arguing that it's a national security bill as much as a financial one. In an opinion piece published in the Financial Times on Saturday, Esper warned that weak digital asset rules leave gaps that rival nations like China and North Korea can exploit.

Esper pointed out that China is building state-directed payment systems designed to evade US oversight and reduce the dollar's role in global finance, saying 'I have long argued that China is the greatest strategic threat of our lifetime.'

He also highlighted concerns about North Korea's use of crypto through groups like the Lazarus Group, which use loopholes to dodge financial rules. Esper said the CLARITY Act would give the US better tools to close these gaps and called it 'one of the country's sharpest tools against rogue actors.'

The Senate is set to vote on the bill on September 15, after Senate Majority Leader John Thune filed cloture to bring the bill to the floor for a vote.