According to ChainCatcher and Bitcoin.com, Montana is accelerating the development of a digital asset regulatory framework to address the increasing trend of cryptocurrency fraud. State Securities and Insurance Commissioner James Brown cited Federal Trade Commission data, stating that nationwide fraud losses in 2024 reached $1.25 billion, a 25% year-on-year increase, with the elderly population, ranking sixth in demographic proportion, becoming the primary target.
Brown supports the "Cyber Token Regulation Act" under state legislative review, which would authorize regulatory bodies to conduct entry reviews and continuous supervision of blockchain transaction service providers, emphasizing "promoting economic innovation and consumer protection through clear responsibility boundaries". If the bill passes, Montana will become the first U.S. jurisdiction to systematically regulate on-chain transaction entities.
Regulatory actions focus on three major risk areas:
- "Pig Butchering" social engineering fraud: 15 cases have been filed statewide in 2024, involving over $900,000, with scammers inducing victims to invest in fake trading platforms by fabricating interpersonal relationships;
- Bank transfer fraud: Using cryptocurrency mixing services to obscure fund flows;
- High-yield investment traps: Circumventing compliance reviews through excessive return promises.
Brown announced the establishment of a cross-departmental digital asset law enforcement team, opened a 24-hour reporting channel, and plans to trace on-chain funds in collaboration with federal agencies. Industry experts suggest this may provide a paradigm reference for Web3 regulation across U.S. states.
