Senator Cynthia Lummis has pushed forward legislation aimed at curbing the crypto theft operations run by North Korea’s Lazarus Group, which has turned digital asset heists into a lucrative state-sponsored venture. The CLARITY Act, formally known as H.R. 3633, would empower the U.S. Treasury Department to freeze questionable crypto transactions and impose sanctions on foreign digital asset firms involved in illegal activities.
Key provisions of the CLARITY Act
The bill introduces several important measures to close gaps in current crypto regulations. A standout feature is a safe harbor clause for digital asset companies that choose to freeze suspicious transactions. This provision protects compliant exchanges and stablecoin issuers from lawsuits when they pause transfers linked to illicit funds, a legal risk that currently deters many from taking action.
also the legislation extends the Bank Secrecy Act and anti-money laundering requirements to cryptocurrency exchanges and certain decentralized finance platforms. To bolster enforcement, the bill allocates $150 million to FinCEN for developing digital asset regulations and another $150 million in grants for state and local law enforcement agencies. It also establishes frameworks for information sharing between the Department of Justice, Treasury, and Department of Homeland Security.
Where the bill stands now
The updated CLARITY Act text was released on July 22, 2026. The House passed the measure with a 294-134 vote back in July 2025. In May 2026, the Senate Banking Committee approved it 15-9, sending the bill to the full Senate for consideration. Lummis has stressed that this could be the last chance to create a full U.S. digital asset regulatory framework before 2030, warning that failure to act now would cede leadership in crypto standards to other countries.
