Two U.S. senators introduced bipartisan legislation on Monday designed to bring some order to the federal government's fractured approach to cryptocurrency scams. The bill comes as lawmakers increasingly frame digital asset fraud as a serious and growing threat to American investors.
Building a United Front Against Crypto Fraud
Senator Elissa Slotkin (D-MI) and Senator Jerry Moran (R-KS) unveiled the Strengthening Agency Frameworks for Enforcement of Cryptocurrency Act, or SAFE Crypto Act. The legislation would create a federal task force that brings together an interesting mix of players: the Treasury Department, law enforcement agencies, financial regulators, and private-sector experts.
The goal is straightforward enough. The task force would identify, track, and disrupt scams involving digital assets. More importantly, it would improve coordination among agencies that currently operate in their own silos with limited overlap. Right now, fighting crypto fraud often feels like a game of regulatory whack-a-mole, with different agencies tackling different pieces of the puzzle.
Closing Enforcement Gaps and Helping Local Police
Under the proposed bill, the task force wouldn't just react to scams as they happen. It would study trends in cryptocurrency fraud and evaluate methods to prevent it more effectively. The legislation also calls for equipping local law enforcement with improved investigative tools and expanding public awareness around common scam tactics.
"It's critical we protect Americans against scams in all industries, but especially cryptocurrency as it becomes more popular," Slotkin said. She added, "This task force, established by the SAFE Cryptocurrency Act, will allow us to draw upon every resource we have to combat fraud in digital assets."
Keeping Congress in the Loop
The bill includes a reporting requirement that's fairly standard but important. The task force would need to deliver an initial report within one year of its establishment to the Senate Banking and Agriculture committees, as well as the House Financial Services and Agriculture committees. After that, annual reports would keep lawmakers updated on emerging threats and enforcement progress.
Moran framed the measure as a way to strengthen cooperation among government agencies, law enforcement, and the financial services industry as digital assets become more mainstream.
Industry Perspective on the Enforcement Landscape
Crypto attorney Gabriel Shapiro wrote on X that the proposal could help address areas where oversight has lagged. He noted that existing regulators aren't always focused on issues like hacks and phishing attacks. Shapiro also pointed to smaller fraud schemes that often fall outside enforcement priorities.
The numbers suggest this isn't a trivial problem. Blockchain analytics firm Chainalysis has previously reported that illicit cryptocurrency volume reached an estimated $51.3 billion in 2024, highlighting the expanding range of criminal activity across digital asset networks.
