Ex-Defense Secretary Esper Frames CLARITY Act as National Security Issue

What happened: Former U.S. Defense Secretary Mark Esper published an op-ed in the Financial Times arguing that the CLARITY Act is not just a financial services bill but also a national security imperative. Esper, who serves on Coinbase’s Global Advisory Council, cited China’s efforts to build state-directed payment rails and North Korea’s use of crypto to evade sanctions as key threats. He advocated for expanding Treasury’s Section 311 authority over digital assets.

Why it matters: Esper’s intervention reframes the CLARITY Act debate, leveraging national security arguments to sway lawmakers and the public. His position aligns with his advisory role at Coinbase, raising questions about potential conflicts of interest. The push to link digital asset regulation to national security may help overcome Democratic objections tied to ethics and enforcement, but also risks politicizing the legislative process.

Source: Cointelegraph