Sens. Moran, Slotkin Introduce Bipartisan Legislation to Launch Task Force to Identify & Combat Cryptocurrency Fraud

WASHINGTON - U.S. Senators Jerry Moran (R-Kan.) and Elissa Slotkin (D-Mich.) introduced the Strengthening Agency Frameworks for Enforcement of Cryptocurrency (SAFE Crypto) Act, bipartisan legislation that would establish an inter-governmental task force between federal agencies and the private sector to coordinate identifying and combating cryptocurrency fraud. The task force would be required to present an update within a year of its launch to the Senate Banking and Agriculture committees and the House Financial Services and Agriculture committees, followed by annual reports to the respective committees.

"With fraud and other payment scams continuing to grow, protecting the financial security and well-being of Kansans is critical," said Sen. Moran. "Our legislation would establish a task force to strengthen coordination between government agencies, law enforcement and the financial services industry as they work together to identify and combat cryptocurrency fraud. As cryptocurrency becomes more widely used, this legislation would help counter threats and make certain all Americans are better protected from crypto scams."

"It's critical we protect Americans against scams in all industries, but especially cryptocurrency as it becomes more popular," said Sen. Slotkin. "It starts with equipping local law enforcement with tools they need to combat crypto scams, and ensuring Michiganders know how to protect themselves and their money. 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."

"Over the last two years, we've tracked billions in scams and fraud across the crypto ecosystem," said Ari Redbord, Vice President, Global Head of Policy, TRM Labs. "Solving this problem requires real-time disruption. This legislation enables public-private collaboration using blockchain intelligence to track, interdict, and disrupt illicit networks as activity is occurring - helping protect victims and ensure a safer financial system. By bringing industry and law enforcement together, we can meaningfully reduce criminals' ability to exploit transformative technologies for harm."

Members of the task force would include:

• The following federal agencies, including the Department of Treasury as the chair of the task force (or a designee thereof): the Office of the Attorney General; the Financial Crimes Enforcement Network (FinCEN); the Secret Service; and any additional federal agency that the Department of Treasury, in consultation with the task force, deems relevant.
• The following industry groups: including stablecoin issuers; cryptocurrency exchanges; cryptocurrency custodians; blockchain intelligence providers; a representative of scam victims or consumer protection groups; and any additional private sector stakeholder that the Department of Treasury, in consultation with the task force, deems relevant.
• Representatives of federal, state and local law enforcement.
• Representatives of one or more state bank regulatory authorities.

Full text of the SAFE Crypto Act can be found HERE.

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