Senators Introduce SAFE Crypto Act Against Scams

U.S. Senators Elissa Slotkin (D-MI) and Jerry Moran (R-KS) introduced the bipartisan Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE Crypto) Act on Monday, aimed at coordinating federal efforts to combat cryptocurrency scams.

What's the scoop?

• Task Force Creation: The bill establishes a federal task force uniting Treasury, law enforcement, regulators, and private-sector participants to identify, track, and disrupt crypto fraud.
• Key Focus Areas: The task force examines scam trends, develops prevention methods, equips local law enforcement with tools, and boosts public awareness of common scams.
• Reporting Requirements: The task force submits an initial report within one year to relevant congressional committees, followed by annual updates.

Bankless Take:

This effort makes sense given the scale of funds being siphoned off and the documented involvement of state actors, North Korea for example, in major crypto hacks. If the U.S. intends to position itself as the capital of crypto, safeguarding these systems is a must, especially since funds stolen onchain are materially harder to sanction or blacklist after the fact.

Further, with crypto becoming more widespread, even if just on the backend, making sure the proper systems are in place to have such adoption go smoothly are critical. I believe this needs to go beyond just coordinated enforcement and into education. That includes guidance on proper custody, common exploits, and basic financial hygiene specific to blockchains. It’d be quite a sight to see the federal government pen a “How to Stay Safe Onchain” guide. That said, there are clear second-order implications for privacy: more enforcement typically means more surveillance, which in turn increases the importance of robust privacy protections alongside these initiatives.