Crypto Growth Must Not Risk People’s Safety

The primary role of law‑enforcement officers is to safeguard communities and enforce the law. Every day, they witness how crime harms families across Arizona. An increasing number of criminals are turning to the internet and using cryptocurrency as a tool for fraud and other illicit activities.

The Reality Behind the Hype

Advocates of crypto often tout new technology and money‑making opportunities. Yet, on the front lines, a different picture emerges:

• Retirees lose life savings in scams.
• Criminals move money across borders with digital coins.
• Victims have little hope because crypto transactions are hard to trace or reverse.

The FBI’s recent Internet Crime Report indicates that Americans lost over $11 billion to crypto‑related fraud in 2025. This category produced the highest financial losses of any scam type, affecting more than 181 000 victims. Investment schemes involving digital assets stole billions from hardworking citizens, and losses rose more than 20 % from the previous year—nearly $21 billion in total cybercrime losses nationwide.

Unique Challenges for Investigators

Unlike traditional banks, digital coins can hop through multiple wallets, foreign exchanges, and opaque networks within minutes. Investigators face:

• Jurisdictional hurdles when funds cross borders.
• A lack of clear records to trace stolen money.

Criminals exploit these weaknesses, making crypto an attractive vehicle for fraud and money laundering.

Legislative Response: The CLARITY Act

Congress is considering new rules that could further open the crypto market. The CLARITY Act aims to regulate digital assets and spur innovation. While encouraging progress is positive, doing so without robust safeguards can cost ordinary people.

• Anti‑Money Laundering (AML) rules must be enforced.
• Arizona senators, such as Senator Ruben Gallego, emphasize staying competitive in financial tech—but safety and innovation must coexist.

Lawmakers should not back crypto expansion without addressing the real dangers that officers, investigators, and victims face daily. The CLARITY Act must include strict AML requirements matching those of banks to protect against scams, fraud, and illicit finance on all platforms—including decentralized ones.

Protecting Arizona Families

Arizona families deserve a safe, clear, and accountable financial system. They need honest investors protected while law‑enforcement has the tools to fight crime. Most importantly, they deserve leaders who stand with victims rather than special interests seeking looser rules.

Congress can balance innovation and accountability now—acting before more Americans suffer the consequences.