Senator Cynthia Lummis says the Clarity Act closes financial gaps that North Korea’s Lazarus Group exploits to obtain stolen funds. She says the bill gives the Treasury Department new sanctions tools and a legal shield for exchanges that freeze suspicious funds.
The Digital Asset Market Clarity Act is a draft law on the basic market structure of the cryptocurrency industry. It was approved in the House in 2025 and a Senate committee this year, but is still awaiting a full vote.
Where does the bill stand?
The draft law was officially announced Human Resources 3633passed the House of Representatives earlier this month with bipartisan support. It was advanced by the Senate Banking Committee in May, and Senate Republicans released a consolidated draft on July 22 that adds ethics rules and illicit financing language.
Loomis pointed to three specific sections to address these critics. Senator Elizabeth Warren, for example, Calls The draft law loophole sanctions.
Section 201 applies the Bank Secrecy Act (BSA) and anti-money laundering (AML) rules to cryptocurrency companies. Article 303 adds sanctions authority targeting Iran. Section 305 allows exchanges to freeze associated funds Suspicious activityProvided they cooperate with law enforcement.
Senate Majority Leader John Thune said Thursday that he did not expect a final vote to be held before the vote August vacation. He still wanted to start the discussion. Republicans hold 53 seats and need roughly seven Democratic votes to reach the 60-vote threshold.
Polymarket dealers The 2026 pass rate is now at roughly 33% to 37%, down from more than 80% in February. Late voting pushes the bill toward the midterm election calendar, where time to vote and political appetite shrink.
Lazarus’s history of multi-billion dollar heists
The Lazarus Group has used cryptocurrency theft to fund North Korea’s weapons programs for years. the The group was stolen Nearly $625 million from Ronin Bridge in 2022, which powers the game Axie Infinity. He – she Another was stolen $1.5 billion from Bybit in February 2025, the largest cryptocurrency theft ever.
The Treasury Department estimates that Lazarus has taken at least $3.4 billion worth of cryptocurrencies since 2007. Hackers have also posed as remote IT workers to infiltrate cryptocurrency companies directly.
What happens next
Industry groups continue to push for a vote before the holiday. However, holdout Democrats want stricter ethics language on officials’ holdings of cryptocurrencies before offering support.
Loomis framed the illicit finance provisions as a response to real threats, not as a talking point. Whether it wins over naysayers, or the bill passes into September, could decide whether Congress approves cryptocurrency rules in 2026.
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