Esper says CLARITY Act is a national security bill, urges swift passage

Former U.S. Defense Secretary Mark Esper urged swift passage of the CLARITY Act, arguing in a Financial Times opinion piece that the measure is not just a financial services bill but a national security bill. Esper said China is investing in state-backed payment systems designed to bypass U.S. financial oversight and the dollar-based system, while groups including North Korea’s Lazarus Group are also using cryptocurrencies to evade U.S. financial controls. He added the CLARITY Act would expand the U.S. Treasury Department’s special measures authority under Section 311 of the Patriot Act to address those threats. Meanwhile, the Senate is expected to hold a vote on the CLARITY Act on Sept. 15, according to the source.