The Clarity Act, currently under consideration, seeks to enhance regulatory measures against money laundering and sanctions evasion in the cryptocurrency sector. Contrary to some criticisms, the Act leverages the transparency of public blockchains to track illicit activities, as demonstrated by the recent tracing of $3.84 billion in transactions linked to Iran and North Korean hackers via the Hong Kong exchange CoinEx. The Act introduces nearly twenty provisions, including bringing digital asset service providers under the Bank Secrecy Act. This includes mandatory risk assessments, compliance officers, and suspicious activity reporting. It also mandates real-time information sharing between exchanges and law enforcement, and the development of AI tools to combat terrorist financing and money laundering. Additionally, kiosk operators will face new requirements to prevent scams and unauthorized fund transfers.