SAFE Crypto Act Targets Crypto Scams With Federal Task Force

Crypto scams are growing in the United States, and lawmakers are acting to stop the losses. The SAFE Crypto Act aims to create a federal task force to prevent fraud, track criminals, and protect Americans, especially older investors who are most at risk.

Federal Task Force to Fight Crypto Scams

The SAFE Crypto Act was introduced by Senators Elissa Slotkin from Michigan and Jerry Moran from Kansas. The bill calls for a task force led by the Treasury Secretary to start within 180 days if the law passes. 

Reports indicated that the group would include top officials from the Treasury, Justice Department, Secret Service, and other agencies. State and local law enforcement would also take part.

Additionally, the task force would work with private companies like digital asset firms, stablecoin issuers, and consumer protection groups.

It would look at all types of crypto scams, including Ponzi schemes, fake token sales, rug pulls, and grooming scams where criminals trick people over time. The group is expected to improve coordination so scams can be stopped before they spread.

If approved, the law will provide protection against scams and help regulate the market, similar to the recently passed Genius Act on stablecoins.

Americans Lost Billions to Crypto Scams

In 2024, U.S. residents lost about $9.3 billion to crypto scams, according to the FBI. That is 66% more than the year before. Many scams do not involve hacking but use tricks to gain trust. 

Additionally, in August 2025, FBI warned of fake “crypto recovery” services preying on victims of crypto scams. Fraudsters pose as law firms, promising to recover lost funds but instead aim to steal more money.

Sadly, older Americans are often targeted because scammers know they are less familiar with digital assets. Lawmakers say local police often do not have the tools or experience to handle these crimes.

The SAFE Crypto Act would require stablecoin companies to have the technical ability to freeze or seize stolen digital funds if courts approve it. This step is meant to make it harder for scammers to move money quickly and help authorities recover lost funds.

Protecting Seniors and the Public

The law also builds on past efforts to protect older Americans. Earlier proposals, such as the National Senior Investor Initiative Act of 2023 and the Fraud Prevention and Recovery Act of 2024, focused on preventing fraud and helping victims recover money. 

The new task force would meet at least three times in its first year and give a public report to Congress. Afterward, it would continue to provide annual updates and disband three years after the first report.

Again, lawmakers say crypto scams are becoming more complex and require a coordinated response. For example Shengsheng He, a California resident, was recently sentenced to more than four years in federal prison for a crypto scam.

The SAFE Crypto Act aims to reduce losses, track fraud, and protect Americans who are most at risk from digital scams.