Senator Cynthia Lummis (R-Wyo.) took to X on Sunday to make the case that the Clarity Act is exactly what's needed to shut down North Korean hackers and other bad actors who've been helping themselves to billions in crypto. Her argument? These groups thrive on the gaps in the current financial rules, and the bill is designed to patch them.
"The Clarity Act gives Treasury new sanctions authority and a safe harbor for companies to freeze suspicious transactions before the money moves," Lummis posted. She's previously highlighted a provision that lets the Treasury monitor, limit, or even ban digital-asset transactions from foreign jurisdictions that pose money-laundering risks.
The timing is no coincidence. North Korean hackers, particularly the infamous Lazarus Group, have been on a tear. In 2025 alone, they stole over $2 billion in crypto, and 2026 isn't looking any better. April set a record for the most cryptocurrency hacking incidents in a single month, and total losses this year have already topped $1 billion, according to DeFiLlama. The U.S. government says the proceeds fund North Korea's weapons and missile programs.
But not everyone is cheering. Critics argue the Clarity Act could backfire, creating what they call a "ticket to sanctions evasion." Richard Nephew, former Director for Iranian affairs at the National Security Council, warns the bill creates "significant loopholes" in anti-money laundering and counter-terrorism financing rules for decentralized finance and some crypto firms. That could leave the system "vulnerable" to sanctions evaders and fraudsters, he says, with countries like Iran and North Korea potentially exploiting the weaknesses.
Senator Elizabeth Warren (D-Mass.) has also voiced concerns, arguing the legislation fails to prevent adversaries, especially Iran, from misusing cryptocurrencies. So while Lummis sees the Clarity Act as a shield against North Korean hackers, others see a sword that could cut the wrong way.
