Lummis Pushes CLARITY Act to Combat Lazarus Group's Crypto Theft

Senator Cynthia Lummis is pushing for the CLARITY Act to combat the Lazarus Group, a state-sponsored hacking operation that has turned crypto theft into a national revenue stream. The bill would grant the Treasury Department expanded authority to freeze suspicious transactions and impose sanctions on foreign digital asset firms engaged in illicit finance.

The Digital Asset Market Clarity Act grants Treasury new sanctions authority to target foreign digital asset entities involved in illicit activities. Section 10305 of the bill introduces a safe harbor provision for digital asset firms that freeze suspicious transactions, protecting them from lawsuits even if they unilaterally freeze customer funds.

The bill also extends Bank Secrecy Act and anti-money laundering requirements to digital asset exchanges and certain DeFi platforms. On the enforcement funding side, the CLARITY Act proposes $150 million for the Financial Crimes Enforcement Network (FinCEN) to build out its digital asset rulemaking capabilities, plus another $150 million in grants for state and local law enforcement.