Lummis: CLARITY Act Closes Loopholes Exploited by Lazarus Group

Senator Cynthia Lummis (R-WY) is pushing for a Senate floor vote on the CLARITY Act, citing its ability to close illicit-finance gaps exploited by groups like North Korea's Lazarus Group.

The group has been responsible for roughly two-thirds of all crypto hacking losses worldwide in the first half of 2026, with $643 million stolen across 207 incidents. This includes a record-breaking $2.02 billion stolen in 2025 alone, a 51% jump from the previous year.

The CLARITY Act aims to address this issue by giving the US Treasury Department and crypto exchanges new authority to freeze suspicious transactions before funds move overseas. Section 303 of the bill enables new crypto sanctions on Iran, while Section 305 lets exchanges stop illicit funds before they reach North Korea.