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U.S. Treasury to Gain Power to Freeze Crypto Transactions under CLARITY Act
The CLARITY Act, a market‑structure bill targeting digital assets, is gaining momentum in Congress. Senator Cynthia Lummis (R‑WY) and a coalition of lawmakers are pushing for a Senate floor vote, citing the bill’s ability to close financial‑crime gaps exploited by North Korea’s Lazarus Group, which she says has stolen billions in crypto.
Key provisions would grant the Treasury Department authority to designate foreign jurisdictions as primary money‑laundering concerns (Section 303) and empower crypto exchanges and stablecoin issuers to place holds of up to 30 days—extendable to 180 days—on transactions suspected of illicit activity (Section 305). Companies that act in good faith would receive safe‑harbor protection from civil suits. The legislation also expands Bank Secrecy Act anti‑money‑laundering requirements to digital‑asset firms and earmarks $150 million each for FinCEN and for state and local law‑enforcement grants to combat crypto crime.
The National Police Credit Union Association has publicly endorsed the updated draft, highlighting provisions aimed at protecting consumers from crypto‑ATM fraud and strengthening inter‑agency coordination. If enacted, the CLARITY Act would markedly tighten U.S. regulatory oversight of the cryptocurrency market.
Entities
FinCEN · Lazarus Group · National Police Credit Union Association · Senator Cynthia Lummis · U.S. Treasury Department
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Section 305 of the CLARITY Act permits exchanges to place holds on suspicious cryptocurrency transactions for up to 30 days, extendable to 180 days. news.bitcoin.com
- [● 2 SOURCES] Companies that freeze suspicious transactions under the CLARITY Act receive safe‑harbor protection from civil liability. www.tronweekly.com · news.bitcoin.com
- [○ 1 SOURCE] The CLARITY Act earmarks $150 million for FinCEN to enhance cryptocurrency investigations. www.tronweekly.com
- [○ 1 SOURCE] The National Police Credit Union Association publicly backs the updated CLARITY Act. www.tokenpost.com
- [○ 1 SOURCE] The CLARITY Act provides $150 million in grants for state and local law‑enforcement agencies to investigate crypto crimes. www.tronweekly.com
- [● 3 SOURCES] The CLARITY Act would give the U.S. Treasury authority to freeze suspicious cryptocurrency transactions. www.tronweekly.com · www.tokenpost.com · news.bitcoin.com
- [○ 1 SOURCE] North Korea’s Lazarus Group has stolen roughly $6.75 billion in cryptocurrency. www.tronweekly.com
- [○ 1 SOURCE] Section 303 of the CLARITY Act allows the Treasury to designate foreign jurisdictions as primary money‑laundering concerns for digital assets. news.bitcoin.com