Esper Urges Senate to Pass CLARITY Act as National Security Measure

Former U.S. Defense Secretary Mark Esper is urging the Senate to pass the CLARITY Act, framing the digital asset legislation as a critical national security measure rather than just financial regulation. In an opinion piece published in the Financial Times on August 8, Esper argued that the bill is essential to counter China's development of alternative payment infrastructure and to combat illicit finance by groups like North Korea's Lazarus Group. His advocacy comes as the Senate has scheduled a key procedural vote on the bill for September 15, following the conclusion of the August congressional recess.

Esper, who currently serves on Coinbase's Global Advisory Council, contended that the United States' current regulatory framework for digital assets is inadequate and provides strategic advantages to adversaries. He emphasized that China is actively building government-controlled financial systems designed to circumvent U.S. oversight and diminish the dollar's global influence. "I have long argued that China is the greatest strategic threat of our lifetime," Esper stated. He also pointed to North Korean cyber actors who exploit cryptocurrency to evade American financial sanctions.