Lummis: Clarity Act Closes Loopholes Used by North Korea-Based Hackers

U.S. Senator Cynthia Lummis says the Clarity Act will strengthen sanctions compliance against North Korea-based hackers, particularly the Lazarus Group.

Lummis stated that the act would close financial regulatory gaps allowing these entities to steal cryptocurrencies.

The bill empowers the Treasury to monitor and limit digital-asset transactions connected to foreign jurisdictions if they present a money-laundering concern.

Critics argue, however, that the Clarity Act could be used for sanctions evasion. Richard Nephew, former Director for Iranian affairs at the National Security Council, claims that the bill creates loopholes in anti-money laundering and counter-terrorism financing rules for decentralized finance and certain cryptocurrency firms.