In a groundbreaking move, Senators Elissa Slotkin (D-MI) and Jerry Moran (R-KS) have introduced the SAFE Crypto Act, a bipartisan bill aimed at combating the alarming rise of cryptocurrency fraud. With the ever-growing adoption of digital assets, this legislation seeks to establish a federal taskforce dedicated to protecting Americans against scams in the crypto space.
What is the SAFE Crypto Act?
The SAFE Crypto Act mandates the formation of a federal taskforce within 180 days of the bill’s passage. Spearheaded by the Secretary of the Treasury, the taskforce will bring together government officials, law enforcement agencies, and representatives from the cryptocurrency industry—including exchanges and blockchain analytics firms.
Senator Slotkin explained, “It’s critical we protect Americans against scams in all industries, but especially cryptocurrency. That starts with equipping local law enforcement with the tools they need, and our bill draws upon every resource we have to combat fraud in digital assets.”
The Five Pillars of the Federal Taskforce
The proposed taskforce would focus on the following key activities:
- Scam Detection and Prevention: Identifying new methods fraudsters use to exploit individuals.
- Cross-Sector Collaboration: Ensuring coordination between government, law enforcement, and industry partners.
- Stakeholder Insights: Gathering data and feedback from relevant players in the crypto ecosystem.
- Information Sharing: Encouraging transparency and the sharing of best practices among participants.
- Asset Recovery: Developing strategies for confiscating and returning stolen assets.
A Focused Approach to Crypto Fraud
The taskforce will meet at least three times annually to strengthen its fight against scams. Among its responsibilities, the group will devise public education strategies, work to coordinate efforts across jurisdictions, and collaborate with foreign governments to address the global nature of crypto fraud. Within one year of its formation, the taskforce will issue a comprehensive report including its findings, strategies, and suggestions for regulatory or legislative improvements.
Industry Leaders Speak Out
Ari Redbord, VP and Global Head of Policy at TRM Labs, expressed his support for the SAFE Crypto Act. He highlighted the need for a “whole-of-government approach” that focuses on early scam detection, freezing assets when legally possible, and dismantling the systems enabling large-scale cryptocurrency fraud. According to Redbord, “Since 2023, more than $53 billion has been stolen globally through crypto-enabled scams and theft.”
As the SAFE Crypto Act lays the foundation for a coordinated response to these challenges, it could pave the way for reducing the widespread losses reported in recent years. For example, 2025 alone has seen a sharp rise in crypto-related fraud, with losses surpassing $1.7 billion as of April, according to ImmuneFi, far exceeding 2024’s total of $1.49 billion.
Stay Safe in the Crypto Market
For crypto investors looking to stay vigilant, security solutions like Ledger Nano X, a hardware wallet, can provide an extra layer of protection for your digital assets. By securely storing your private keys offline, you can reduce the risk of falling victim to hacks or scams.
This bipartisan legislation is a critical step in strengthening protections for crypto users nationwide. As the digital asset landscape evolves, coordinated efforts like the SAFE Crypto Act will serve as a foundation for a safer, more secure market.
