U.S. Senators launched a bipartisan assault on cryptocurrency fraud Monday. The SAFE Crypto Act creates a specialized federal task force. This marks Washington's most aggressive move against digital asset scams.
Senators Elissa Slotkin and Jerry Moran introduced the legislation. The Strengthening Agency Frameworks for Enforcement of Cryptocurrency Act targets billions in crypto losses. Americans lost $9.3 billion to crypto scams in 2024 alone.
FBI and Treasury Unite Under New Framework
The task force brings unprecedented coordination. Treasury Department leads the initiative alongside FBI officials. Secret Service, Financial Crimes Enforcement Network, and Justice Department join forces.
According to Senator Slotkin from Michigan, the task force will draw upon every resource available. She emphasized protecting Michiganders against sophisticated digital asset fraud. Local law enforcement gets better tools through this legislation.
Senator Moran from Kansas stressed growing threats. He stated the measure strengthens cooperation between government agencies and law enforcement. The financial services industry also joins this coordinated effort.
What Industry Experts Say About Enforcement
Gabriel Shapiro from Delphi Labs shared insights on X. He noted that SEC and CFTC don't focus on hacks or phishing schemes. According to"> Shapiro on X, this legislation could prove very useful. He suggested scammers might panic if enforcement intensifies.
As crypto attorney Gabriel Shapiro tweeted on X, top officials from multiple agencies will pursue criminals. The Attorney General, FinCEN Director, and Secret Service Director lead this charge. Shapiro emphasized these enforcement gaps need filling urgently.
TRM Labs vice president Ari Redbord provided additional perspective. He noted tracking billions in scams across crypto ecosystems. Blockchain intelligence firms will support real-time disruption efforts.
Task Force Structure and Private Sector Role
The legislation mandates task force formation within 180 days. Members include stablecoin issuers and cryptocurrency exchanges. Blockchain intelligence providers and scam victim representatives join discussions.
Custodians and consumer protection groups participate actively. State and local law enforcement gain seats at the table. This public-private collaboration enables coordinated response strategies.
The task force examines multiple fraud categories. Ponzi schemes, rug pulls, and fraudulent token offerings face scrutiny. Money laundering operations and financial grooming scams require immediate attention.
Fraud Statistics Reveal Growing Crisis
FBI data shows alarming increases in crypto losses. The $9.3 billion represents a 66% jump from 2023. Senior citizens over 60 lost $2.84 billion specifically.
Investment scams target retirement savings most frequently. Victims rarely recover stolen funds through traditional channels. Sophisticated schemes exploit blockchain technology's borderless nature.
Chainalysis reported $51.3 billion in illicit cryptocurrency volume for 2024. This demonstrates criminal behavior diversifying across digital platforms. Enforcement coordination becomes more critical as complexity increases.
Timeline and Reporting Requirements
Congress receives the first task force report within one year. Senate Banking and Agriculture committees review progress annually. House Financial Services and Agriculture committees receive identical updates.
The task force holds at least three in-person meetings yearly. It evaluates existing protective measures across financial institutions. International experience and FBI statistics inform strategic planning.
Data-sharing networks connect government and industry participants. Suspicious transfers trigger immediate tracking protocols. Wallet addresses link to known fraud schemes automatically.
Regulatory Landscape Shifts Toward Enforcement
The SAFE Crypto Act differs from previous crypto legislation. This bill focuses exclusively on scams and fraud prevention. Market rules and asset classification remain separate concerns.
Stablecoin issuers face new data-sharing expectations. Service providers must implement fund-freezing mechanisms. Due process protections accompany these technical requirements.
The task force operates for three years after initial reporting. This temporary structure aims to develop systemic solutions quickly. Permanent agency creation isn't part of current legislation.
