Former US Secretary of Defense Mark Esper is urging passage of the CLARITY Act, arguing the bill should be treated as a national security measure, not just a financial services one. Esper warned that weak digital asset oversight could hand North Korea and China an opening to undermine US financial power. He pointed to China’s investment in a state-led payment system, saying it is intended to evade US oversight and undercut the dollar’s central status. Esper also said the CLARITY Act would broaden the Treasury Department’s authority to take special measures under Section 311 of the Patriot Act against actors such as North Korea’s Lazarus Group that try to work around financial controls. The Senate is expected to vote on the bill on September 15. Senate Majority Leader John Thune has filed a cloture motion, a procedural move toward a vote. The Senate schedule is now in focus after the former defense secretary said the bill should be enacted quickly.
Esper calls CLARITY Act a national security measure
Former US Secretary of Defense Mark Esper said the CLARITY Act should be passed quickly, calling it a national security bill rather than just a piece of financial services legislation. Weak rules for digital assets, he warned, could give North Korea and China an opening to undermine US financial power.
China payment system and Treasury powers
Esper pointed to China’s investment in a state-led payment system, saying the effort is designed to evade US oversight and erode the dollar’s central status. The bill, he added, would also broaden the Treasury Department’s authority to take special measures under Section 311 of the Patriot Act, including actions aimed at North Korea’s Lazarus Group and others that seek to work around US financial controls.
Senate schedule
The US Senate is expected to vote on the legislation on September 15. Senate Majority Leader John Thune has filed a motion to invoke cloture, setting up the vote.
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