Bipartisan US Senate proposal seeks to tackle cryptocurrency fraud

• US senators propose a joint task force to disrupt crypto scams nationwide.
• The proposal looks to boost coordination across agencies, law enforcement, and industry.
• The proposal targets rising fraud with better tools, data sharing, and reports.

A new bipartisan effort in the US Senate aims to confront the rising tide of cryptocurrency scams by tightening federal coordination and sharpening enforcement tools.

As digital assets gain wider use, US lawmakers say gaps in oversight have left consumers exposed to increasingly sophisticated fraud.

A coordinated response to a growing threat

US Senators Elissa Slotkin of Michigan and Jerry Moran of Kansas have introduced the Strengthening Agency Frameworks for Enforcement of Cryptocurrency Act.

The proposal is designed to bring order and urgency to the federal response against crypto-related scams, which have surged alongside mainstream adoption of digital assets.

At the centre of the bill is the creation of a federal task force that would unite the Treasury Department, law enforcement agencies, financial regulators, and private-sector experts.

Supporters say this structure reflects the reality of modern crypto crime, which often crosses jurisdictions and moves faster than traditional enforcement mechanisms.

Senator Slotkin has framed the legislation as a consumer protection measure rooted in practicality.

Slotkin argues that cryptocurrency fraud deserves special attention because of its complexity and speed, noting that local law enforcement agencies often lack the tools or expertise to investigate such crimes effectively.

By pooling federal resources and industry knowledge, the task force would aim to close that gap.

Inside the SAFE Crypto Act

The SAFE Crypto Act directs the task force to study emerging trends in digital asset scams and identify methods that have proven effective in stopping them.

This includes tracking patterns in phishing schemes, hacks, and small-scale Ponzi operations that may fall outside the primary focus of existing regulators.

A key element of the bill is its emphasis on supporting state and local authorities.

The task force would help equip local law enforcement with investigative tools and technical guidance, recognising that many victims first turn to local agencies for help.

Lawmakers say this support could significantly improve response times and case outcomes.

Public education is another core component. The task force would work to raise awareness about common cryptocurrency scams so consumers can better protect their money.

As fraud tactics evolve, sponsors of the bill argue that prevention through education is as important as enforcement after losses occur.

The legislation also includes accountability measures. The task force would be required to deliver an initial report to congressional committees within one year of its formation, followed by annual updates.

These reports would outline emerging threats, enforcement progress, and areas where further action may be needed.

The proposal has drawn attention from within the crypto and legal communities, where concerns about fragmented enforcement have been growing.

A January report from Chainalysis estimated that illicit cryptocurrency volume reached $51.3 billion in 2024, reflecting both the scale and diversity of on-chain criminal behaviour.

Crypto lawyer Gabriel Shapiro described the bill as a potential way to fill an enforcement gap, pointing out that agencies like the SEC and CFTC are not always focused on scams such as hacks or phishing operations.

If enacted, the SAFE Crypto Act would mark a significant step toward a more organised and proactive US strategy against cryptocurrency fraud.