Former Defense Secretary Esper Urges Senate to Pass CLARITY Act

Esper, who served at the Pentagon from 2019 to 2020 and currently sits on Coinbase’s Global Advisory Council, argues that the dominance of the U.S. dollar relies on transparent payment networks. He contends that when crypto transactions shift to offshore venues with minimal oversight, Washington loses its capacity to track illicit finance and combat threats from actors like North Korea’s Lazarus Group. Furthermore, Esper warns that domestic inaction provides China an opening to establish alternative payment infrastructures outside of U.S. influence.

The legislation, which passed the House with a 294–134 vote in July 2025, faces a high-stakes cloture vote requiring 60 senators to advance. Despite the push from proponents like Senate Banking Committee Chair Tim Scott, the bill remains mired in disputes over stablecoin rewards, decentralized finance protocols, and political ethics requirements for government officials. Banking lobbyists have specifically challenged provisions regarding interest-bearing digital assets, fearing a migration of deposits away from regional institutions.

While Congress debates, the Commodity Futures Trading Commission is exploring ways to expand its oversight using existing authority under the Commodity Exchange Act. CFTC Chair Michael Selig recently signaled that the agency will pursue market structure improvements regardless of the bill’s outcome. However, even with support from President Donald Trump, the path to final passage remains narrow, with prediction markets significantly discounting the likelihood of the bill becoming law before the end of the session.