Two U.S. Senators introduced the Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE) Act on Monday, December 16, 2024. The bipartisan legislation, sponsored by Democrat Elissa Slotkin and Republican Jerry Moran, aims to crack down on crypto fraud and scams by enhancing coordination between the U.S. Treasury, law enforcement agencies, regulators, and private sector players.
The proposed task force would empower high-ranking officials, including the Attorney General, the director of the Financial Crimes Enforcement Network (FinCEN), and the director of the United States Secret Service, to pursue crypto criminals more effectively. The urgency is underscored by FBI data showing Americans lost $9.3 billion to crypto-related investment scams in 2024, a staggering 66% increase from 2023. Individuals over 60 were the hardest hit, accounting for $2.84 billion of those losses.
"This task force, established by the SAFE Cryptocurrency Act, will allow us to draw upon every resource we have to combat fraud in digital assets," said Senator Slotkin. Senator Moran added, "As cryptocurrency becomes more widely used, this legislation would help counter threats and make certain all Americans are better protected from crypto scams."
However, the legislative path forward is unclear. The Senate Banking Committee has deferred the markup of crypto-related bills until early 2026, creating a gap between the bill's introduction and potential enactment. This timeline has led to market speculation and uncertainty among stakeholders, with some industry observers questioning the immediate tangible impact.
Gabriel Shapiro, General Counsel of Delphi Labs, offered a strong endorsement of the bill's potential, stating on social media platform X that "Scammers will probably end up shitting themselves if this goes hard." He argued the act could be "very useful" as current securities and commodity regulators are not as focused on enforcement against hackers and Ponzi schemes. Private sector firms like blockchain forensic company TRM Labs have signaled readiness to assist, with Vice President Ari Redbord emphasizing that collaboration can "meaningfully reduce criminals’ ability to exploit transformative technologies for harm."
