Lummis Says Crypto Market Bill Would Help Counter North Korean Hacking Group

US senator Cynthia Lummis defending a major crypto market structure bill by arguing it closes financial loopholes exploited by North Korea’s state-linked hacking group, which has stolen billions in digital assets to fund weapons programs. She says the legislation would give the Treasury Department new sanctions tools and legal protection for exchanges that freeze suspicious funds, directly countering criticism from lawmakers who call the bill a potential sanctions gap.

Where the Legislation Currently Stands

The bill passed the House earlier this year with bipartisan support and cleared a Senate committee in May, though it still awaits a full floor vote. A merged Senate draft released in late July added ethics rules and stronger illicit-finance language. Key provisions would apply anti-money-laundering rules to crypto firms, add sanctions authority targeting Iran, and let exchanges freeze suspicious funds if they cooperate with law enforcement. The Senate’s top Republican said he does not expect a final vote before the August recess, though he wants floor debate to begin. Republicans hold a narrow majority and need several Democratic votes to clear the 60-vote threshold. Prediction markets now price passage this year at roughly a third, down sharply from earlier in the year.

A Hacking Group’s Long History of Crypto Theft

The North Korean hacking group has stolen crypto for years to fund the country’s weapons programs, including hundreds of millions from a gaming-related blockchain bridge in 2022 and a record-setting $1.5 billion theft from a crypto exchange last year. Treasury estimates the group has stolen well over $3 billion in digital assets since 2007, sometimes by posing as remote IT workers inside crypto companies. Industry groups are pushing for a vote before the recess, while some lawmakers want stronger ethics rules on officials’ crypto holdings before backing the bill.