SAFE Crypto Act Could Deter Crypto’s Bad Actors
Two US Senators have introduced the Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE) Act to address crypto-related fraud and scams. The bill aims to improve coordination between the US Treasury, law enforcement, regulators, and the private sector to enhance detection and prosecution efforts. The SAFE Act will establish a task force involving high-ranking officials such as the Attorney General, Financial Crimes Enforcement Network Director, and Secret Service Director. In 2024, Americans reportedly lost $9.3 billion to crypto-linked investment scams, a 66% increase from 2023, with older Americans particularly affected. The losses include any scam mentioning crypto, not just those on blockchain platforms. Despite current education efforts, scammers are using more advanced methods. Industry experts believe the SAFE Act’s enforcement focus could significantly disrupt scam operations. Private firms like blockchain analytics company TRM Labs will assist authorities by helping track and dismantle illicit networks in real time, advocating for a collaborative approach between industry and law enforcement to reduce abuse of cryptocurrency technologies.
