Introduction
In a significant legislative move, Senators Elissa Slotkin, a Democrat from Michigan, and Republican Jerry Moran from Kansas have unveiled a new bipartisan initiative known as the SAFE Crypto Act. This proposed legislation aims to create a federal taskforce designed explicitly to tackle the rising issue of cryptocurrency scams, a concern that has prompted increasing scrutiny as digital currencies gain popularity.
Taskforce Formation
The act lays out a requirement for the Secretary of the Treasury to form the taskforce within six months following its enactment. Comprised of government officials and key stakeholders from the cryptocurrency sector—such as exchanges and blockchain analytics firms—the taskforce will be tasked with five critical areas of focus:
- Identifying and thwarting scams
- Implementing a cooperative approach to fraud prevention
- Gathering input from various stakeholders
- Facilitating information exchange among participants
- Overseeing asset recovery efforts
Taskforce Operations
Scheduled to convene a minimum of three times annually, the taskforce’s agenda will revolve around:
- Understanding prevalent scamming techniques
- Creating public awareness strategies
- Supporting law enforcement initiatives
- Working with international counterparts to bolster efforts against fraud
Within one year of its establishment, the taskforce must compile a comprehensive report detailing its findings and proposing any necessary adjustments to current laws or regulations.
Legislative Support
Senator Moran emphasized the timeliness and importance of the SAFE Crypto Act, pointing out that it aims to enhance collaboration among government bodies, law enforcement, and the financial industry in the fight against cryptocurrency-related fraud. The announcement included a supportive quote from Ari Redbord, Vice President and Global Head of Policy at TRM Labs, who highlighted that the act acknowledges the need for more than simple information sharing to effectively combat these scams.
“Since the start of 2023, over $53 billion has been lost globally due to crypto scams and theft, underscoring the urgency for a comprehensive approach that can not only identify scams early but also act decisively by freezing and seizing illicit funds.”
Conclusion
While the SAFE Crypto Act might be just the beginning in addressing the escalating challenge of crypto fraud, Redbord considers it a crucial step forward. It lays the groundwork for a more comprehensive and organized response to the complexities of crypto fraud and theft. The bill comes amid troubling statistics indicating a surge in crypto scams, with a report from ImmuneFi showing that losses from hacks and scams have already reached $1.7 billion in just the first four months of 2025, surpassing the total losses for the entire previous year.
As the cryptocurrency landscape evolves, the SAFE Crypto Act seeks to forge a path toward robust measures to protect users and secure the integrity of the digital financial ecosystem.
