US proposes revival of 18th century law so Trump can deputize private citizens to fight crypto scammers

US Representative David Schweikert has introduced legislation granting the President authority to act against crypto criminals operating abroad.

The bill, filed as House Resolution (H.R. 4988), invokes the rarely used concept of “letters of marque and reprisal,” which is a legal instrument dating back to maritime warfare.

Historically, such letters authorized privateers to attack and seize enemy ships during wartime, providing governments a way to retaliate against foreign aggression.

Under Schweikert’s proposal, the mechanism would extend into the digital domain. The legislation would allow private individuals or companies to act on behalf of the United States to recover stolen assets or disrupt cybercriminal operations targeting US interests.

These private actors could be instructed to use “all means reasonably necessary” to seize assets or detain foreign actors, including those linked to state-sponsored cybercrime networks.

Meanwhile, any letter issued under the measure would require a security bond to enforce accountability and ensure compliance with its directives.

Schweikert said:

“Our current tools are failing to keep pace. This legislation allows us to effectively engage these criminals and bring accountability and restitution to the digital battlefield by leveraging the same constitutional mechanism that once helped secure our nation’s maritime interests.”

The proposal is currently under review by the House Committee on Foreign Affairs and must pass both chambers before it can reach the President for approval. If enacted, it would create an entirely new framework for US engagement in cross-border crypto crime enforcement.

Potential impact

If HR 4988 becomes law, the US could shift from relying primarily on intelligence-gathering to actively deploying private actors in cybercrime interventions.

This move comes amid growing frustration with the surge in high-profile crypto hacks. In 2025 alone, state-sponsored groups such as North Korea’s Lazarus Group have orchestrated major attacks, including a $1.5 billion exploit on Bybit in February and breaches targeting other major platforms like India’s CoinDCX.

Law enforcement agencies have struggled to apprehend the perpetrators or recover stolen funds, exposing crypto investors and the platforms.

Considering this, Schweikert said:

“Americans deserve protection from digital predators who exploit outdated laws and hide in foreign jurisdictions. This proposal harnesses innovation and constitutional authority to respond to the modern crisis of cybercrime.”

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