Mark Esper calls CLARITY Act a national security bill

Former Defense Secretary Mark Esper urged the Senate to approve the CLARITY Act and warned that weak rules for digital assets allow adversaries to undermine U.S. financial power. The Senate is scheduled to vote on the bill on Sept. 15 after Majority Leader John Thune filed for cloture.

In an op-ed published Saturday, Esper wrote that Beijing is investing in state-directed payment systems intended to bypass U.S. oversight and reduce the dollar’s role in global finance. He wrote, “I have long argued that China is the greatest strategic threat of our lifetime.”

He argued that gaps in cryptocurrency regulation create channels that actors such as North Korean cybercriminal groups have used to move value outside established controls, citing networks linked to the Lazarus operations.

Esper wrote that the CLARITY Act would give regulators clearer authority to address those risks and would expand the Treasury Department’s special-measures power under section 311 of the USA PATRIOT Act, a tool used to limit or isolate foreign financial institutions tied to illicit activity. He described that authority as “one of our sharpest weapons against rogue actors.”

Supporters say the bill would clarify which federal agencies oversee parts of the crypto market, strengthen consumer protections and give Treasury more authority to disrupt illicit transactions routed through digital tokens and related technologies.

Opponents have raised concerns about the scope of regulatory powers and potential effects on innovation in digital finance.

Esper, who serves on the Coinbase Global Advisory Council, framed the debate as a security matter and urged senators to approve the measure promptly.