• A bipartisan group of senators has proposed making a federal activity drive solely centered on cracking down on cryptocurrency fraud.
• The Treasury-led group will deliver 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 geared 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 widespread and fraud turns into extra subtle.

Lawmakers say crypto fraud has elevated sharply lately, costing victims billions of {dollars} and infrequently overwhelming native police departments who lack the instruments to trace blockchain-based crimes.

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What does the SAFE Crypto Act do?

The proposed invoice would create a federal activity drive centered solely on cryptocurrency fraud. The duty drive will probably be led by the U.S. Division of the Treasury and can deliver collectively consultants from federal businesses, regulation enforcement, regulators, and the personal sector in a coordinated effort.

The aim is to determine fraud quicker, monitor stolen funds throughout the blockchain, and cease fraud earlier than victims lose their financial savings. The duty drive may even assist native and state police have entry to higher expertise and data to analyze crypto-related crimes.

Blockchain intelligence firms will assist monitor unlawful actions as they happen and, if potential, make it simpler to freeze or recuperate stolen funds.

Not a free go for cryptocurrencies, however extra oversight required

Supporters stress that the SAFE Crypto Act will not be meant to speed up the adoption of cryptocurrencies, however relatively to make the system safer. The invoice focuses on enforcement, fraud prevention, and accountability, not deregulation.

If handed, the duty drive can 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 individuals and companies use digital property. Criminals are focusing on customers by way of pretend funding apps, romance and “pig butchering” scams, phishing emails, pyramid schemes, ransomware assaults, large-scale trade hacks, and extra. In keeping 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 due to this fact alerts a shift in the direction of nearer coordination and real-time enforcement as digital property turn out to be a everlasting a part of the monetary system.

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