- A bipartisan group of senators has proposed making a federal activity pressure solely targeted on cracking down on cryptocurrency fraud.
- The Treasury-led group will carry collectively regulators, police forces and blockchain intelligence firms.
- The push comes amid a surge in cryptocurrency fraud, with billions of {dollars} stolen from platforms by mid-2025.
Two opposing U.S. senators have launched a brand new invoice aimed toward defending Individuals from crypto fraud. Democratic Sen. Elissa Slotkin of Michigan and Republican Sen. Jerry Moran of Kansas introduced the SAFE Crypto Act, saying stronger motion is required as digital property turn out to be extra frequent and fraud turns into extra subtle.
Lawmakers say crypto fraud has elevated sharply lately, costing victims billions of {dollars} and sometimes overwhelming native police departments who lack the instruments to trace blockchain-based crimes.
Associated: FDIC strikes to formalize how banks can challenge stablecoins beneath the GENIUS Act
What does the SAFE Crypto Act do?
The proposed invoice would create a federal activity pressure targeted fully on cryptocurrency fraud. The duty pressure will likely be led by the U.S. Division of the Treasury and can carry collectively specialists from federal businesses, regulation enforcement, regulators, and the non-public sector in a coordinated effort.
The purpose is to establish fraud sooner, observe stolen funds throughout the blockchain, and cease fraud earlier than victims lose their financial savings. The duty pressure can even assist native and state police have entry to higher know-how and data to research crypto-related crimes.
Blockchain intelligence firms will assist observe unlawful actions as they happen and, if attainable, make it simpler to freeze or get better stolen funds.
Not a free move for cryptocurrencies, however extra oversight required
Supporters stress that the SAFE Crypto Act shouldn’t be meant to speed up the adoption of cryptocurrencies, however quite to make the system safer. The invoice focuses on enforcement, fraud prevention, and accountability, not deregulation.
If handed, the duty pressure could be established inside 180 days and challenge a public report back to Congress inside a 12 months, with periodic updates thereafter.
Cryptocurrency fraud on the rise
Cryptocurrency fraud will skyrocket in 2025 as extra folks and companies use digital property. Criminals are focusing on customers by way of faux funding apps, romance and “pig butchering” scams, phishing emails, pyramid schemes, ransomware assaults, large-scale trade hacks, and extra. In line with Chainalies, $2.17 billion was stolen from crypto platforms by mid-2025.
In 2024 alone, criminals moved greater than $40 billion by way of illicit crypto addresses, and Individuals misplaced an estimated $10 billion to crypto funding fraud.
The SAFE Crypto Act subsequently indicators a shift in direction of nearer coordination and real-time enforcement as digital property turn out to be a everlasting a part of the monetary system.
Associated: CZ rejects President’s request for token itemizing, “no particular remedy”
Disclaimer: The knowledge contained on this article is for informational and academic functions solely. This text doesn’t represent monetary recommendation or recommendation of any variety. Coin Version shouldn’t be chargeable for any losses incurred on account of the usage of the content material, merchandise, or companies talked about. We encourage our readers to do their due diligence earlier than taking any motion associated to our firm.