Senator Cynthia Lummis says the Clarity Act shuts financial gaps that North Korea’s Lazarus Group exploits for stolen funds.She argues the bill gives Treasury new sanctions tools and a legal shield for exchanges that freeze suspicious funds.
The Digital Asset Market Clarity Act is the crypto industry’s core market-structure bill. It cleared the House in 2025 and a Senate committee this year, but still awaits a full floor vote.
Where the Bill Stands
The bill, formally H.R. 3633, passed the House in earlier this month with bipartisan support. The Senate Banking Committee advanced it in May, then Senate Republicans released a merged draft on July 22 that adds ethics rules and illicit-finance language.
Lummis has pointed to three specific sections to counter such critics. Senator Elizabeth Warren, for instance, calls the bill a sanctions loophole.
Section 201 applies Bank Secrecy Act (BSA) and anti-money-laundering (AML) rules to crypto firms. Section 303 adds sanctions authority aimed at Iran. Section 305 lets exchanges freeze funds tied to suspicious activity, provided they cooperate with law enforcement.
Senate Majority Leader John Thune said Thursday he does not expect a final vote before the August recess. He still wants floor debate to begin. Republicans hold 53 seats and need roughly seven Democratic votes to reach the 60-vote threshold.
Polymarket traders now price 2026 passage at roughly 33% to 37%, down from above 80% in February. A slipped vote pushes the bill toward a midterm-election calendar, where floor time and political appetite both shrink.
Lazarus’ History of Billion-Dollar Heists
Lazarus Group has used crypto theft to fund North Korea’s weapons programs for years. The group stole roughly $625 million from the Ronin Bridge in 2022, which powers the game Axie Infinity. It stole another $1.5 billion from Bybit in February 2025, the largest crypto heist on record.
Treasury estimates Lazarus has taken at least $3.4 billion in crypto since 2007. Hackers have also posed as remote IT workers to infiltrate crypto firms directly.
What Happens Next
Industry groups continue pressing for a vote before recess. Democratic holdouts, however, want firmer ethics language on officials’ crypto holdings before committing support.
Lummis has framed the illicit-finance provisions as a response to real threats, not a talking point. Whether that wins over holdouts, or the bill slides into September, may decide if Congress passes crypto rules in 2026.
Source: BeInCrypto
