Why Investor Protection and Enforcement Still Matters

Until recently, it was “green candle galore” in the crypto markets since Trump’s election win. Bitcoin momentarily broke the all-important $100,00 level, a near 500% recovery from the 2022 Crypto Winter lows, and optimism for crypto is even reaching Congress, where talks of a U.S. National Bitcoin Reserve are gaining serious steam.

If stock market bull runs are marathons, crypto bull runs are breakneck sprints. But buyer beware: when crypto surges and FOMO takes hold, scammers seize the moment, turning hype into a goldmine for illicit activity.

With no clear regulatory framework yet in place, the risks are amplified. As former President Trump returns to office with a more pro-crypto Congress, regulatory change feels imminent. But what risks do investors face if enforcement measures are not adequately funded?

The 2024 election results could mark a pivotal chapter in crypto’s history. Can the new Trump Administration rise to the challenge to not just unlock greater innovation in crypto, but also better protect its users and investors?

Why Enforcement and Protection Should Still be a Priority

Crypto bull runs are often accompanied by a surge in scams and fraud. In 2023 alone, a period of rising prices, the FBI’s Crypto Fraud report showed that there was $5.6 billion in reported losses tied to crypto scams and fraud. A staggering 70% ($3.9 billion) of these losses stemmed from investment scams.

While phishing scams are prevalent in a digital world, the tenfold rise in Bitcoin ATM scam losses from 2020 to midway through 2024 paints the issue in a tangible way. $65 million in just the first six months of 2024 was stolen via Bitcoin ATMs, with the average loss at about $10,000 according to the Federal Trade Commission. Collectively, these figures show the financial damage and expose gaps that must be addressed to protect consumers and deter bad actors – especially if crypto is going to continue to gain traction and popularity.

The U.K. has shown how government policy can adapt to address the rise in crypto-related crime directly. In 2024, legislative updates were made to allow law enforcement to more effectively Go to Source to See Full Article
Author: Nick Steegmans

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