Michaela
Senators Elissa Slotkin and Jerry Moran have unveiled the bipartisan SAFE Crypto Act, proposing a federal task force to enhance enforcement, improve coordination, and tackle the surge in cryptocurrency fraud.
Key Points
- The SAFE Crypto Act proposes a federal task force to tackle the surge in cryptocurrency fraud.
- The legislation emphasizes public-private collaboration and technical tools to trace and halt scam-related funds.
- The task force will report to Congress and automatically dissolve three years after its initial submission.
The SAFE Crypto Act, formally known as the Strengthening Agency Frameworks for Enforcement of Cryptocurrency Act, proposes the creation of a federal task force to detect, monitor, and prevent crypto-related scams. The legislation also aims to improve coordination among government agencies, law enforcement, and private-sector experts, addressing rising losses from investment fraud that disproportionately affect older investors.
Under the SAFE Crypto Act, a federal task force would be established within 180 days of the bill’s enactment to identify and prevent cryptocurrency scams. The group would include top officials from the Treasury, Department of Justice, Financial Crimes Enforcement Network, Secret Service, and other federal agencies, alongside state and local law enforcement.
The legislation also invites participation from digital asset service providers, stablecoin issuers, custodians, blockchain intelligence firms, consumer protection groups, and victims’ advocacy organizations. Tasked with analyzing trends across a broad spectrum of crypto fraud, the task force would focus on Ponzi schemes, rug pulls, fraudulent token offerings, money laundering, and financial grooming scams.
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Furthermore, the legislation cites the need for real-time collaboration between public and private sectors to track and halt the movement of funds linked to scams. It also mandates that stablecoin issuers possess the technical capability to freeze, seize, burn, or reissue digital assets associated with illegal activity, all while adhering to due process and existing legal frameworks.
Under the SAFE Crypto Act, the proposed task force would be required to meet a minimum of three times during its first year and submit a public report to key congressional committees. Following the initial report, the task force would issue annual updates and automatically dissolve three years after its first submission.
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The SAFE Crypto Act marks a clear step toward a more structured approach to cryptocurrency oversight, signaling that U.S. lawmakers are increasingly prioritizing consumer protection, market integrity, and the accountability of both private and public actors in the rapidly evolving digital asset space.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
