U.S. Senator Introduces Bill to Avert Crypto Scams

U.S. Senator Jerry Moran, representing Kansas, has introduced a bill to establish a task force to combat cryptocurrency scams.

The Republican senator who chairs the Senate Committee on Veterans Affairs introduced the bill on December 10.

Bill Seeks to Prevent Cryptocurrency Scams Through Early Detection

The Bill, S.3428, aims to establish a task force that will detect and prevent cryptocurrency scams. It has already been read twice and now referred to the Senate Banking, Housing, and Urban Affairs Committee.

With the proposed legislation, Senator Moran is focused on addressing the growing rate of cryptocurrency scams. Concerns about crypto scams have increased in the U.S., with forms such as investment and pig butchering scams becoming more prevalent.

The Federal Bureau of Investigation (FBI) reported that its Internet Crime Complaint Centre (IC3) received over 47,000 complaints about crypto investment scams in 2024. Overall, the unit reported around $16.6 billion in losses tied to almost 900,000 complaints last year.

While the bill focuses on the use of cryptocurrency for financial fraud, Senator Moran has generally been pro-crypto. He voted in support of the Digital Assets Clarity Act and other pro-crypto legislative measures.

Interestingly, the title of the proposed legislation is similar to that of another bill by Senator Crapo Mike in October. The bill, S. 2019 (TRAPS Act), aims to create a task force that will recognize and avert payment scams.

According to the TRAPS Act, the task force should comprise representatives from several federal agencies and operate for a period of three years. The members must deliberate on the best practices to combat scams and submit a report to the Senate Banking Committee within one year. Bill, S.3428  likely includes similar provisions.

Senate Yet to Agree on Crypto Market Structure Bill

Meanwhile, negotiations over the final draft of the Market Structure Act mean other crypto legislation is likely to take a back seat. Democratic senators are still requesting changes, even as Republicans aim for a markup by next week.

The Senate Democrats, in their latest letter, stated that the draft bill is still missing some major issues. They identified issues related to token classification, stablecoin yield, ethics, and illicit finance.

On the sidelines are advocacy groups, both for and against crypto, who also want their own say on the bill. According to crypto journalist Eleanor Terrett, representatives of leading crypto firms are meeting at the White House today to discuss the bill.

In Congress, the CEOs of top banks, including Citi, Bank of America and Wells Fargo, are also meeting with senators. They reportedly want to discuss banning interest payments on stablecoins, among other issues.

An unlikely opposition also came from the American Federation of Teachers (AFT), asking the Senate to withdraw the bill. They warned that it poses significant risks to pensions and the U.S. economy, as the protections are insufficient.

With the lack of consensus so far in the Senate, concerns are now growing that the bill may not pass this year. However, failure to make progress this year could derail momentum by 2026 as attention might turn to the midterms.