Esper Warns Senate to Pass CLARITY Act for National Security
Mark Esper, former U.S. Secretary of Defense, has called on the Senate to pass the Digital Asset Market Clarity Act (CLARITY Act) as a national security imperative. In a recent opinion piece, Esper stressed that the bill is not merely a financial services measure but a critical tool to modernize the identification and special measures apparatus against foreign threat actors, including North Korea and criminal syndicates.
Esper emphasized that the CLARITY Act would extend the controls currently applied to dollar transactions into the digital ecosystem, ensuring continued visibility into international financial flows and preserving U.S. sanctions capabilities. He warned that failing to pass the bill could allow China, which is investing in state-directed digital payment systems, to set its own rules and erode the dollar’s role as the global standard for savings and settlement.
Stablecoins, which already settle billions of dollars in transactions and are largely collateralized by U.S. Treasuries, are a key focus. The CLARITY Act expands Section 311 of the USA Patriot Act to the digital assets ecosystem, targeting offshore loopholes exploited by rogue actors. Esper also highlighted that the bill would keep cryptocurrency innovation onshore, allowing American businesses to lead in developing protocols and digital assets, similar to how the internet was built by private, U.S.-aligned hands.
With the Senate vote expected in September, Esper urged lawmakers to act with urgency: “We have a narrow window to set the terms of the next financial era rather than inherit terms set by our rivals. The Senate should choose to lead. It should pass the Clarity Act and send it to the president’s desk.”