Proposed legislation aims to unite Treasury, FinCEN, and law enforcement against digital asset fraud
US lawmakers have introduced new legislation designed to strengthen the government’s ability to combat crypto related scams and investment fraud. The proposal comes as reported financial losses linked to digital asset schemes continue to rise, prompting calls for a more unified and targeted enforcement approach.
SAFE Crypto Act Expands Enforcement Coordination
The Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE) Act proposes a coordinated task force bringing together the US Treasury, Financial Crimes Enforcement Network (FinCEN), Secret Service, federal law enforcement agencies, regulators, and private-sector partners. The goal is to improve intelligence sharing, accelerate investigations, and identify bad actors operating across crypto markets.
“Scammers will probably end up shitting themselves if this goes hard, Shapiro said in a post to X on Tuesday,
Supporters argue that the framework closes enforcement gaps by focusing directly on scammers, hackers, and fraud networks, rather than placing the burden solely on compliant users and legitimate crypto businesses.
Crypto Scam Losses Continue to Climb
The urgency of the legislation is underscored by recent data showing Americans lost $9.3 billion to crypto-related investment scams in 2024 a 66% increase year over year. Individuals aged 60 and older accounted for $2.84 billion of those losses, making them the most affected demographic.
While many scams merely reference crypto rather than using blockchain technology directly, criminals increasingly exploit digital asset narratives to gain trust and move funds quickly.
Private Sector to Support Enforcement
Blockchain analytics firms, including forensic monitoring providers, are expected to assist authorities by tracking illicit transactions in real time. This public-private collaboration could significantly disrupt scam operations and raise the cost of fraud across the crypto ecosystem.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.