Senator Cynthia Lummis is making national security the central argument for her push for the Digital Asset Market Clarity Act, with three key provisions aimed at cutting off North Korea’s Lazarus Group from crypto markets. Section 305 creates a safe harbor allowing exchanges to freeze suspicious funds before obtaining a court order, removing liability for platforms that act quickly. Lazarus Group stole approximately $625 million from the Ronin Bridge in 2022, then $1.5 billion from Bybit in February 2025, the largest single crypto heist in history. The Treasury estimates the group has stolen at least $3.4 billion in crypto since 2007, with proceeds directed toward North Korea’s weapons programs. Polymarket traders now price the bill’s passage in 2026 at just 33 to 37 percent, down from above 80 percent in February, with Senator Elizabeth Warren calling the bill a sanctions loophole rather than a sanctions tool.
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