Former U.S. Defense Secretary Mark Esper has urged the Senate to pass the CLARITY Act before its Sept. 15 procedural vote, arguing that delayed crypto rules could weaken U.S. financial and national security.
Key Takeaways
Esper described the CLARITY Act as a national security bill, not merely a financial services bill
The Senate's Sept. 15 cloture vote requires 60 votes to advance the bill
The House approved the CLARITY Act 294-134 in July 2025
Prediction market odds for passage dropped to 10% from 82% in February
Esper Links Crypto Oversight to National Security
The Financial Times published Esper's policy argument on Aug. 7, with the former defense secretary describing the Digital Asset Market Clarity Act as not merely a financial services bill but also a national security bill. Esper, who led the Pentagon from 2019 to 2020, said U.S. power relies partly on the dollar and the payment networks that carry it around the world. Clear rules for digital assets, he argued, would help preserve Washington's view into financial activity while supporting sanctions enforcement. Esper currently serves on Coinbase's Global Advisory Council.
When crypto companies and transactions move through offshore venues with weaker controls, Esper said U.S. agencies lose some ability to follow funds and act against illicit networks. He warned that delays in Washington give China more time to build payment systems outside U.S. influence. This connects to the broader regulatory landscape covered in the SEC opening door to public token sales and California's meme coin bill.
CLARITY Act Faces 60-Vote Test on Sept. 15
Senate Majority Leader John Thune filed cloture on the motion to proceed to H.R. 3633 before lawmakers left for August recess. The resulting vote is scheduled for Sept. 15, requiring 60 senators. Republicans cannot reach the threshold without Democratic votes, leaving the bill dependent on cross-party agreement. A successful vote would not send the legislation to the president but would allow the Senate to start formally considering the measure.
The House approved H.R. 3633 by 294-134 in July 2025. The Senate Banking Committee advanced its market-structure text by 15-9, with two Democrats joining Republicans. The proposal would divide responsibility between the CFTC for qualifying digital commodities and the SEC for tokens classified as securities. This connects to the OCC's bank supervision overhaul and broader U.S. crypto regulatory developments.
Esper Links Crypto Oversight to Sanctions Enforcement
Esper's security case rests partly on the role of the U.S. dollar in global trade and finance. American authorities can monitor or restrict transactions that pass through banks subject to U.S. law, giving Washington tools to enforce sanctions. Digital asset activity routed through lightly regulated foreign platforms can make that work harder. He cited threats from sanctioned networks and North Korean cyber groups, including the roughly $625 million attack on the Ronin network in 2022.
Section 10303 of the bill would expand the Treasury Department's special-measures authority under Section 311 of the USA PATRIOT Act. Treasury could prohibit or place conditions on certain digital asset transfers linked to foreign jurisdictions found to present a primary money-laundering concern. Senate Banking Committee Chair Tim Scott has also argued the legislation would make it harder for criminals and foreign adversaries to misuse the U.S. financial system.
Senate Disputes Continue Despite Security Argument
National security support does not resolve the disagreements holding up the bill. Lawmakers remain divided over stablecoin rewards, decentralized finance rules, and ethics restrictions for public officials with digital asset interests. Banking organizations have pressed lawmakers to prevent exchanges from offering interest-like products without bank-level oversight. Prediction-market traders have lowered passage expectations to 10% after reaching 82% in February. CFTC Chair Michael Selig has said his agency can continue developing digital asset proposals within existing authority, stating that crypto will get market structure regardless of the bill.
