The U.S. Senate introduces bipartisan legislation to strengthen regulation and jointly combat crypto scams

The U.S. Senate recently proposed a new legislation focused on cryptocurrency scams, drawing market attention. Democratic Senator Elissa Slotkin and Republican Senator Jerry Moran jointly introduced a bipartisan bill aimed at strengthening federal enforcement cooperation against cryptocurrency-related fraud.

According to an official statement, the bill is named the “Secure Crypto Enforcement Framework Act” (SAFE Crypto Act). Its core content is to establish a federal task force that consolidates expertise from the Treasury Department, law enforcement agencies, financial regulators, and the private sector to jointly identify, track, and combat the growing digital asset scams.

Senator Slotkin stated that as cryptocurrencies become more widespread in American society, the risk of scams is also rising, and the government has a responsibility to provide more systematic protection for the public. She pointed out that the task force will fully mobilize cross-departmental resources to enhance the ability to identify and respond to crypto scams, preventing more ordinary investors from becoming victims.

According to the bill’s design, the task force will focus on studying the main patterns and development trends of current cryptocurrency scams, including phishing, hacking, small-scale Ponzi schemes, and more, and propose more effective prevention and enforcement measures. Additionally, the task force will provide local law enforcement agencies with more advanced investigative tools and strengthen public education to raise awareness of common crypto scam methods.

The bill also clarifies supervision and accountability mechanisms. The task force is required to submit an initial report to the Senate Banking Committee, Agriculture Committee, and the House Financial Services Committee and Agriculture Committee within one year of its establishment, followed by regular annual progress reports.

Senator Moran stated that the SAFE Crypto Act will help the federal government respond more systematically to security threats in the digital asset space and provide more reliable protection for the American public amid broader adoption of cryptocurrencies.

The crypto legal community also expressed concern about the bill. Renowned crypto lawyer Gabriel Shapiro pointed out that the legislation is expected to fill existing enforcement gaps, as the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have long not focused on hacking and small-scale scams.

Data from blockchain analysis firm Chainalysis further highlights the urgency of the issue. Its report shows that as on-chain crime forms become increasingly diverse, the scale of illegal cryptocurrency transactions is expected to reach $51.3 billion by 2024. This has also become an important background for U.S. legislative bodies to strengthen crypto scam regulation. (The Block)