SAFE Crypto Act to create federal anti‑scam task force for digital assets
Senators Elissa Slotkin (D–MI) and Jerry Moran (R–KS) introduced the bipartisan SAFE Crypto Act to establish a federal Task Force for Recognizing and Averting Cryptocurrency Scams. The task force would coordinate Treasury, federal and local law enforcement, regulators and private‑sector experts to deliver near real‑time intelligence, blockchain analytics access and technical training to local police. It will study trends in financial grooming scams, Ponzi schemes, fraudulent ICOs and money‑laundering tied to digital assets; consult state, local and tribal agencies, victim groups and industry participants; and review international anti‑scam efforts. Senior officials named to lead responses would include the US attorney general, the FinCEN director and the US Secret Service director. The group must produce a comprehensive report to relevant congressional committees within one year and then provide annual updates. The bill would also fund public‑education campaigns to help consumers spot phishing, impersonation and fake investment pitches. For traders, stronger federal coordination narrows enforcement gaps and increases on‑chain monitoring and enforcement risks for scam‑linked projects and illicit flows — a development that could raise compliance scrutiny and downside pressure on tokens implicated in fraud.
Bearish
The SAFE Crypto Act increases federal coordination, on‑chain monitoring access and local law‑enforcement capabilities, and funds education and reporting. For traders, this narrows enforcement gaps that previously allowed scam‑linked projects and illicit flows more operational freedom. In the short term, heightened scrutiny and the prospect of faster takedowns or asset freezes can trigger sell‑offs in tokens tied to fraud allegations or opaque projects, increasing volatility and downside risk. Mid‑to‑long term, improved enforcement and clearer deterrents could reduce illicit activity and improve market integrity, which may benefit legitimate projects — but tokens already implicated in scams or weak governance are likely to suffer sustained negative re‑rating. Overall, immediate price impact is likely negative for assets exposed to fraud risk; marketwide effects should be limited and conditional on enforcement actions and public naming of targets.