Former US Defense Secretary urged the Senate to pass the CLARITY Act, stating that weak regulation of digital assets gives North Korea and China opportunities to undermine US financial influence.
In an article for the Financial Times published on Saturday, former US Defense Secretary Mark Esper said that Beijing is already investing in state payment systems to bypass American oversight and weaken the central role of the US dollar.
"I have long argued that China is the primary strategic threat of our generation," said Esper, a member of Coinbase's Global Advisory Council.
He added that the bill would give the US more effective tools to close cryptocurrency loopholes that North Korean entities, including the Lazarus Group, can exploit to circumvent US financial controls.
"The bill also expands the authority of the Treasury Department to apply special measures under Section 311 of the USA PATRIOT Act—one of our most powerful tools against malign actors," he said.
The Senate is scheduled to vote on the CLARITY Act on September 15. On Saturday, Senate Majority Leader John Thune filed a cloture motion to bring the CLARITY Act to the Senate floor for consideration.
"This is why CLARITY, currently under Senate consideration, is not just a financial services bill. It is a national security bill, and the Senate should pass it without delay," said Esper.
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