TLDR
- Former Defense Secretary Mark Esper wrote an op-ed backing the CLARITY Act
- He said the bill is a national security matter, not just a financial one
- Esper warned China and North Korea could exploit weak crypto rules
- The Senate is set to vote on the bill Sept. 15
- Senate Majority Leader John Thune filed cloture to move the bill forward
Former US Secretary of Defense Mark Esper is pushing the Senate to pass the CLARITY Act. He says the bill is about more than crypto rules.
In his view, it protects US financial power from rivals like China and North Korea.
Esper made his case in an opinion piece in the Financial Times published Saturday. He argued that weak digital asset rules leave gaps that other countries can use against the United States.
Esper’s China Warning
Esper said China is building state directed payment systems. He said these systems are designed to avoid US oversight and reduce the dollar’s role in global finance.
“I have long argued that China is the greatest strategic threat of our lifetime,” Esper wrote.
Esper sits on the Coinbase Global Advisory Council. He has spoken about crypto policy in that role before.
North Korea and the Lazarus Group
Esper also raised concerns about North Korea’s use of crypto. He pointed to groups like the Lazarus Group, which is tied to North Korea, that use crypto loopholes to dodge financial rules.
He said the CLARITY Act would give the US better tools to close those gaps.
Esper noted the bill would extend the Treasury’s special measures authority under section 311 of the USA Patriot Act. He called this one of the country’s sharpest tools against rogue actors.
“This is why the Clarity Act, now before the Senate, is not merely a financial services bill,” Esper wrote. “It is also a national security bill, and it should be understood as such and passed with urgency.”
The Senate is expected to vote on the CLARITY Act on Sept. 15. On Saturday, Senate Majority Leader John Thune filed cloture to bring the bill to the floor for a vote.
