Two US Senators have put forward a bill aimed at combating cryptocurrency fraud and scams by providing law enforcement with enhanced tools to detect attacks and identify offenders.
The Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE) Act, introduced by Democrat Elissa Slotkin and Republican Jerry Moran on Monday, aims to synchronize efforts among the US Treasury, law enforcement, regulators, and private sector participants to address crypto fraud and scams.
“This task force, set up by the SAFE Cryptocurrency Act, will enable us to utilize every resource available to fight fraud in digital assets,” Slotkin stated, while Moran remarked:
“As cryptocurrency gains more widespread use, this legislation would help mitigate threats and ensure all Americans are better shielded from crypto scams.”
The Federal Bureau of Investigation indicated that Americans lost $9.3 billion to crypto-related investment scams in 2024, a 66% rise from 2023. Individuals aged over 60 were the most affected, suffering losses of $2.84 billion.
It is important to highlight that this figure encompasses any investment scam that merely mentions crypto as part of its strategy. A number of these scams do not involve blockchain or cryptocurrencies.
In spite of public and private efforts to raise awareness, crypto fraudsters and scammers have developed increasingly sophisticated methods to steal funds from investors.
However, Gabriel Shapiro, general counsel of crypto investment firm Delphi Labs, mentioned that the effective execution of the SAFE Crypto Act could trigger a state of panic among crypto fraudsters and scammers.
“Scammers will likely end up panicking if this legislation is enforced rigorously,” Shapiro noted in a post on X on Tuesday, pointing out that high-ranking officials such as the attorney general, the director of the Financial Crimes Enforcement Network, and the director of the United States Secret Service would be involved in pursuing crypto criminals.
Shapiro remarked that the SAFE Crypto Act could be “very beneficial” as the US securities and commodity regulators are currently not as focused on enforcement actions against hackers, scammers, and Ponzi scheme perpetrators.
TRM Labs among the private players to lend support
Blockchain forensic firm TRM Labs is among the private sector entities prepared to assist US officials, with its vice president and global head of policy, Ari Redbord, stating that collaboration would aid in tracking and disrupting illegal networks in real-time:
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“By uniting industry and law enforcement, we can significantly lessen criminals’ capability to exploit transformative technologies for malicious purposes.”
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