Congress expands elder fraud enforcement, clarifies blockchain tracing tools.
H.R. 2978 — GUARD Act · Filed by Zachary (Zach) Nunn (R-IA) · 51 cosponsors · Introduced Apr 21, 2025 · Reported out
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What it does
This bill allows state, local, and tribal law enforcement agencies that receive certain federal grant funds to redirect those funds toward investigating elder financial fraud, pig butchering scams, and general financial fraud. It also clarifies that federal law enforcement can assist local agencies in using blockchain tracing tools. The bill requires participating agencies to report on their spending and results, and mandates federal agencies to produce reports on the scope and enforcement of financial fraud in the U.S.
Why we flagged it
The bill's operative mechanism is a reallocation of existing federal grant funds to expand state and local law enforcement's ability to investigate financial crimes targeting vulnerable populations, coupled with federal coordination and reporting requirements.
What the text implies
- Blockchain tracing tools may enable law enforcement to monitor cryptocurrency transactions at scale, potentially creating surveillance infrastructure that could be repurposed beyond fraud investigation if oversight weakens.
- The bill's definition of 'pig butchering' and 'general financial fraud' is broad enough to encompass some legitimate investment disputes or miscommunications, potentially exposing civil disputes to criminal investigation.
The full analysis lists 4 implications of this text.
Who stands to gain
blockchain intelligence software vendors; law enforcement training providers; financial institutions (through fraud prevention coordination)