A bipartisan US Senate proposal seeks to address cryptocurrency fraud
US senators propose joint task force to disrupt crypto scams nationwide The proposal seeks to increase coordination between agencies, law enforcement and industry. The idea is to include better tools, data sharing and reporting on fraud.
A new bipartisan effort in the U.S. Senate aims to strengthen federal coordination and strengthen enforcement tools to confront the growing number of cryptocurrency scams.
As digital assets become more widely used, US lawmakers say regulatory loopholes leave consumers increasingly vulnerable to sophisticated fraud.
A coordinated response to a growing threat
U.S. Senators Elisa Slokin of Michigan and Jerry Moran of Kansas introduced the Agency to Strengthen Cryptocurrency Law Enforcement.
The proposal is designed to bring order and urgency to the federal response to crypto-related fraud alongside the mainstream adoption of digital assets.
At the center of the bill is the creation of a federal task force that would bring together the Treasury Department, law enforcement agencies, financial regulators and private sector experts.
Proponents say this structure reflects the reality of modern crypto-crimes, which often cross jurisdictions and move more quickly than traditional enforcement methods.
Senator Slokin framed the bill as a practical consumer protection measure.
Slokin argues that the complexity and speed of cryptocurrency fraud deserves special attention, noting that domestic law enforcement agencies lack the tools or expertise to effectively investigate such crimes.
By combining federal resources and industry expertise, the task force will aim to close that gap.
In the SAFE Crypto Act
The SAFE Crypto Act directs the task force to study emerging trends in digital asset fraud and identify effective methods to stop them.
This means tracking phishing schemes, hacking and small-scale Ponzi operations may be outside the primary focus of existing regulators.
A key component of the bill is its focus on supporting state and local authorities.
The task force helps arm local law enforcement with investigative tools and technical guidance, recognizing that many victims first go to local agencies for help.
Lawmakers say this support could greatly improve response times and case outcomes.
Public education is another major component. The task force works to raise awareness of common cryptocurrency scams so consumers can better protect their money.
As fraud strategies become more apparent, bill sponsors argue that prevention through education is as important as enforcement after a loss occurs.
The law also includes accountability measures. The task force is required to submit initial reports to congressional committees within one year of its establishment.
These reports outline emerging risks, enforcement progress and areas where further action can be taken.
The proposal has drawn attention from the crypto and legal communities, with growing concerns about fragmented enforcement.
A January report from Chinalysis estimates that illicit cryptocurrency will reach $51.3 billion by 2024, reflecting the scale and diversity of on-chain criminal behavior.
Crypto attorney Gabriel Shapiro described the bill as a way to fill an enforcement gap, noting that agencies like the SEC and CFTC aren't always focused on scams or phishing.
US Senator Moran Proposes Establishing Task Force to Address Safe Crypto Act Against Crypto Scams!!!
They will have the AG, Director FinCEN, Director Secret Service, other agency officials, fraud victims, representatives of stablecoin issuers, watchdogs, etc.
Devoted to find… pic.twitter.com/i94tn2sHdm
— _gabrielShapir0 (@lex_node) December 16, 2025
If passed, the Safe Crypto Act would represent a major step forward in a more organized and proactive US strategy to tackle cryptocurrency fraud.
