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US Senators Move to Combat Crypto Investment Scams With SAFE Act
Two US Senators have unveiled new bipartisan legislation designed to intensify the government’s response to crypto fraud and investment scams, as losses tied to digital asset schemes continue to surge nationwide.
A Coordinated Push Against Crypto Scams
The proposed Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE) Act, introduced on Monday by Democratic Senator Elissa Slotkin and Republican Senator Jerry Moran, aims to equip law enforcement with stronger tools to detect, investigate, and shut down crypto-related scams. The bill seeks to improve coordination between the US Treasury, federal law enforcement agencies, regulators, and private sector partners.
Slotkin said the task force established under the SAFE Act would allow authorities to draw on every available resource to combat fraud in digital assets. Moran added that as cryptocurrency adoption grows, the legislation would help counter emerging threats and ensure Americans are better protected from crypto scams.
Crypto Losses Climb Sharply
The legislation comes amid alarming figures from the Federal Bureau of Investigation, which reported that Americans lost $9.3 billion to crypto-related investment scams in 2024, representing a 66% increase from 2023. Individuals aged 60 and older were hit hardest, accounting for $2.84 billion in reported losses.
Notably, the FBI data includes investment scams that merely referenced crypto as part of their deception, even when blockchain or digital assets were not directly involved.
Industry Reaction and Enforcement Focus
Despite ongoing efforts by both public and private entities to raise awareness, crypto scammers have become increasingly sophisticated. Gabriel Shapiro, general counsel at crypto investment firm Delphi Labs, suggested that a strong rollout of the SAFE Crypto Act could seriously disrupt criminal activity. In a social media post, he noted that senior officials such as the US Attorney General, the Financial Crimes Enforcement Network director, and the US Secret Service director would be involved in pursuing crypto criminals.
Shapiro added that the bill could prove especially valuable, as securities and commodities regulators are not always focused on enforcement against hackers, scammers, and Ponzi scheme operators.
Private Sector Support
Blockchain forensic firm TRM Labs is among the private players ready to support the initiative. Ari Redbord, the company’s vice president and global head of policy, said closer collaboration between industry and law enforcement could help track and disrupt illicit networks in real time, reducing criminals’ ability to exploit emerging technologies.
