US Senators Introduce SAFE Crypto Act to Combat Rising Cryptocurrency Scams in 2025
- What Is the SAFE Crypto Act?
- Why Is This Legislation Necessary?
- How Will the Task Force Operate?
- What Are the Broader Implications?
- Expert Opinions on the Bill
- FAQ: SAFE Crypto Act Explained
In a bipartisan effort to tackle the escalating issue of cryptocurrency-related fraud, US Senators Jerry Moran and Elissa Slotkin have proposed the Strengthening Agency Frameworks for Enforcement of cryptocurrency (SAFE Crypto) Act. This legislation aims to establish a federal task force to monitor, investigate, and prevent crypto scams, which have cost Americans billions in recent years. Here’s a deep dive into what the bill entails and why it matters.
What Is the SAFE Crypto Act?
The SAFE crypto Act seeks to create a specialized task force comprising the Treasury, law enforcement, financial regulators, and private-sector experts. Their mission? To detect, track, and dismantle fraudulent activities in the crypto space. The task force will focus on trends like Ponzi schemes, token sale scams, and money laundering while equipping local authorities with better investigative tools.
Why Is This Legislation Necessary?
Cryptocurrency scams have surged, with the FBI reporting $9.3 billion in losses in 2024—a 66% jump from the previous year. Elderly investors are particularly vulnerable. The bill addresses regulatory gaps, as agencies like the SEC and CFTC aren’t primarily focused on smaller-scale fraud like phishing or social engineering scams.
How Will the Task Force Operate?
The task force must submit an initial report within a year of formation, followed by annual updates to congressional committees. It will also leverage blockchain intelligence to disrupt illicit networks in real time, a strategy praised by TRM Labs’ Ari Redbord, who noted that public-private partnerships are critical in curbing crypto crime.
What Are the Broader Implications?
The SAFE Crypto Act reflects growing concerns about crypto’s role in financial crimes. Chainalysis’ 2025 report revealed $51.3 billion in illicit crypto activity last year, with centralized services and DeFi platforms being prime targets. The bill could set a precedent for global crypto regulation.
Expert Opinions on the Bill
Gabriel Shapiro, a crypto-focused attorney, argues the bill closes enforcement loopholes. Meanwhile, Senator Slotkin emphasized the need to protect Americans as crypto adoption grows. "This task force will harness all available resources to combat digital asset fraud," she said.
FAQ: SAFE Crypto Act Explained
What is the SAFE Crypto Act?
The SAFE Crypto Act is a bipartisan bill proposing a federal task force to combat cryptocurrency fraud through coordinated enforcement and public awareness.
How much have crypto scams cost Americans?
In 2024 alone, losses exceeded $9.3 billion, per FBI data—a sharp rise from $5.3 billion in 2023.
Who supports this legislation?
Key supporters include Senators Moran and Slotkin, along with industry experts like TRM Labs’ Ari Redbord.
