US Senators Push SAFE Crypto Enforcement Bill

The US has proposed a federal task force to combat crypto scams, enabling it to stop fraudsters through sophisticated enforcement and analytics in its bipartisan legislation.

The Strengthening Agency Frameworks to Enforce Cryptocurrency (SAFE Crypto) Act is a bipartisan bill proposed by US Senators Elissa Slotkin and Jerry Moran to combat the increase in the number of fraudulent activities involving cryptocurrencies.

The new legislation aims to create a special task force of the agencies that include the US Department of the Treasury and the Financial Crimes Enforcement Network. The initiative would also be aided by independent blockchain experts in the private sector, which would improve state-business collaboration.

As opposed to conventional enforcement methods, the task force would be conducted using real-time intervention. Through regulatory power and blockchain analytics technology, the agencies seek to track illegal money flows, halt frauds on the spot, and minimize the losses being suffered by consumers.

The SAFE Crypto Act affects the area of investment fraud, phishing schemes, ransomware activities, and money laundering related to digital assets. Lawmakers hypothesize that the decentralized character of crypto ecosystems and blockchain infrastructure necessitates coordinated and technology-focused regulation instead of a piecemeal one.

According to Senator Moran, the rising number of cryptocurrency users poses greater financial risk to consumers and enhanced inter-agency cooperation is necessary. The bill does not go further in terms of market regulation but focuses on enforcement and fraud prevention.

The SAFE Crypto Act has become available in the US Senate and the bill has to be signed by both houses of Congress to come into existence. Provided its enactment, it would represent a serious change in how the US authorities should employ blockchain expertise to fight fraud in digital assets.