US senators introduce bipartisan bill to combat crypto fraud

U.S. Senators Elissa Slotkin and Jerry Moran have introduced a bipartisan bill aimed at strengthening federal coordination to combat crypto-related scams.

The proposed legislation, titled the "Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE Crypto) Act," seeks to establish a federal task force that brings together the Treasury, law enforcement agencies, financial regulators, and private-sector experts to identify, track, and disrupt crypto fraud, according to a statement released on Monday. 

"It's critical we protect Americans against scams in all industries, but especially cryptocurrency as it becomes more popular," Sen. Slotkin said in the statement. "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."

Under the bill, the task force would focus on examining current trends in digital asset scams and identifying effective methods for preventing such crimes. The task force is also expected to provide local law enforcement with enhanced investigative tools and increase public awareness about common cryptocurrency scams. 

The bill mandates the task force to deliver an initial update within one year of its establishment to the Senate Banking and Agriculture committees and the House Financial Services and Agriculture committees, with subsequent reports submitted annually to those panels.

"As cryptocurrency becomes more widely used, this legislation would help counter threats and make certain all Americans are better protected from crypto scams," said Sen. Moran.

Gabriel Shapiro, a crypto lawyer, wrote that the proposed legislation could fill an enforcement gap. "Feels like this could be very useful! SEC/CFTC not really focused on things like hacks, phishing, petty ponzi schemes, etc," he said.

A January report from Chainalysis confirms the growing role of crypto in criminal activities, estimating that illicit cryptocurrency volume reached $51.3 billion in 2024 as on-chain criminal behavior became increasingly diverse.