US Senators Introduce SAFE Crypto Act to Combat Rising Cryptocurrency Fraud in 2025
- What Is the SAFE Crypto Act?
- Why Is This Legislation Urgent?
- How Will the Task Force Operate?
- What Are the Most Common Crypto Scams?
- FAQs About the SAFE Crypto Act
In a bold move to tackle the escalating issue of cryptocurrency fraud, US Senators Jerry Moran and Elissa Slotkin have introduced the Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE Crypto) Act. This bipartisan legislation aims to establish a federal task force to monitor, investigate, and prevent crypto-related scams, which have surged in recent years. With losses exceeding $9.3 billion in 2024 alone, the Act seeks to protect investors, particularly older Americans who are increasingly targeted. Here’s a deep dive into what the SAFE Crypto Act entails and why it matters.
What Is the SAFE Crypto Act?
The SAFE Crypto Act proposes the creation of a national task force comprising representatives from the Treasury Department, law enforcement agencies, financial regulators, and private-sector experts. This group will focus on identifying and combating crypto fraud, including money laundering, Ponzi schemes, rug pulls, and fraudulent token sales. The task force will also educate the public on common bitcoin scams and provide local law enforcement with better tools to investigate these crimes.
Gabriel Shapiro, a cryptocurrency-focused attorney, praised the Act for addressing enforcement gaps. "The SEC and CFTC often overlook issues like phishing, cyberattacks, and small-scale Ponzi schemes," Shapiro noted. "This legislation could fill those voids."
Why Is This Legislation Urgent?
Cryptocurrency fraud has exploded in recent years, with older investors disproportionately affected. According to the FBI’s Internet Crime Complaint Center (IC3), Americans lost over $9.3 billion to crypto scams in 2024—a 66% increase from 2023. Chainalysis reported that illegal crypto transactions reached $51.3 billion in 2024, highlighting the growing role of digital assets in criminal operations.
Ari Redbord of TRM Labs emphasized the need for immediate action: "Public-private partnerships are crucial to disrupting illegal networks using blockchain technology."
How Will the Task Force Operate?
The task force will submit an initial report to congressional committees within a year of its formation, followed by annual updates. Senator Slotkin stressed, "Protecting Americans from fraud, especially in crypto, is critical as digital assets gain popularity."
Senator Moran added that the Act would help mitigate threats and safeguard citizens from Bitcoin scams. "Crypto is here to stay, and so are the bad actors exploiting it," he said.
What Are the Most Common Crypto Scams?
The FBI warns that investment fraud, particularly "pig butchering" scams, dominates crypto-related crimes. These schemes often involve social engineering, where criminals pose as trustworthy figures to manipulate victims over time. Centralized services and DeFi platforms are frequent targets, with the latter accounting for most stolen funds in 2024.
FAQs About the SAFE Crypto Act
What is the SAFE Crypto Act?
The SAFE Crypto Act is a bipartisan bill introduced to combat cryptocurrency fraud by establishing a federal task force.
Who introduced the SAFE Crypto Act?
US Senators Jerry Moran and Elissa Slotkin introduced the legislation.
How much did Americans lose to crypto scams in 2024?
Over $9.3 billion, per FBI data.
What types of fraud will the task force target?
Money laundering, Ponzi schemes, rug pulls, and fraudulent token sales, among others.
When will the task force report to Congress?
An initial report is due within a year, followed by annual updates.
