US Senators Target Rising Crypto Scams with New SAFE Crypto Act
Washington draws a line in the digital sand. A bipartisan group of US senators just introduced the SAFE Crypto Act, aiming to clamp down on the surge of crypto-related fraud that's been plaguing investors.
The Regulatory Crackdown
Forget the wild west—this legislation wants to bring law and order. It proposes stricter oversight and clearer enforcement pathways for agencies going after bad actors in the decentralized space. Think of it as a legislative spotlight aimed at the shadowy corners of the market where scams currently thrive.
Why Now? The Scam Surge
The timing isn't accidental. As mainstream adoption grows, so do the sophisticated schemes targeting both new and seasoned investors. Pump-and-dumps, rug pulls, and phishing attacks have moved from niche threats to headline news, eroding trust and spooking institutional money sitting on the sidelines.
The Industry's Tightrope Walk
This is the classic crypto conundrum: how do you regulate innovation without strangling it? Proponents argue clear rules protect consumers and legitimize the ecosystem. Critics whisper about innovation chill and the irony of applying centralized fixes to a decentralized ideal. It’s a move that could either clean up the neighborhood or send the most interesting builders packing—a classic case of regulatory theater meeting digital reality.
The bottom line? The game is changing. Whether this act becomes a shield for investors or just another piece of bureaucratic parchment, one thing's clear: the era of asking for forgiveness instead of permission is facing a major vote in Congress. Just in time for the next market cycle, where, as always, the biggest profits and losses are rarely found in the legal fine print.
Crypto scams are getting faster, smarter and harder to track. Lawmakers are now treating them as a growing national problem, and they want a coordinated federal response.
This week,aimed squarely at crypto-related fraud. The proposal, called the, would create a dedicated federal task force focused on detecting and preventing cryptocurrency scams.
What the SAFE Crypto Act Will Do
The bill proposes forming aled by the, bringing together officials from the, and other federal and state agencies.
Unlike past crypto legislation, this effort is not about market rules or asset classification. The focus is narrow and practical:that continue to drain billions from investors.
The task force WOULD also include, such as stablecoin issuers, digital asset custodians, and blockchain intelligence firms, along with representatives for scam victims and law enforcement.
“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,” Slotkin said.
Why Now? The Threat Is Escalating
The push comes as crypto-related crime continues to climb. According to, more than, surpassing the total recorded for all of 2024.
At the same time, crypto ATM fraud is emerging as a growing concern. Between, losses tied to crypto ATM fraud have already reached.
“As cryptocurrency becomes more widely used, this legislation would help counter threats and make certain all Americans are better protected from crypto scams,” Moran said.
A Gap in Enforcement
Crypto lawyersaid the proposal could address blind spots in current enforcement. “Feels like this could be very useful! SEC/CFTC not really focused on things like hacks, phishing, petty ponzi schemes, etc,” he wrote.
Blockchain forensic firmhas also signaled support, saying closer coordination between industry and law enforcement could help disrupt scam networks in real time.
What Happens Next
If passed, the task force would issue an initial report within, followed byto congressional committees.
For now, the bill signals a clear shift: Washington is focusing directly on crypto scams where losses are mounting fastest.
