The persistent growth of romance confidence scams emphasizes the urgent need for policymakers to prioritize national security, counter illicit finance uses of cryptocurrency, and improve information sharing with community banks, ICBA told Congress.

ICBA Statement: In a written statement for a House Financial Services Committee national security subcommittee hearing on crypto-based romance confidence scams—also known as “pig butchering”—ICBA said:

• The scam exemplifies the hazards of unregulated crypto for consumers and the banking system.

• Despite community bank efforts to educate their customers and employees and to invest in fraud prevention and detection, these scams override victims’ judgment.

• Congress and regulators should close regulatory gaps related to decentralized finance and expand on Financial Crimes Enforcement Network efforts to address the impact of DeFi on money laundering.

• U.S. policymakers should lead an international effort to reinforce and harmonize digital assets regulatory frameworks.

• Coordination and information sharing among national security agencies, international institutions, law enforcement, and the financial and technology sectors is needed to combat these scams.

ICBA Resources: Recent ICBA blog posts spotlight the growth of these scams and the need for a policy response.

Previous ICBA Advocacy: ICBA supports global efforts to advance international crypto asset regulation, including the Financial Stability Board’s framework to support consistent regulatory and supervisory standards and baseline policy recommendations from the International Organization of Securities Commissions.