House passes bill supporting cryptocurrency-scam investigations and blockchain tracing

What changed

The House passed H.R. 2978, the GUARD Act of 2026. The bill would authorize specified federal grant funds for investigations of elder financial fraud and pig-butchering schemes, including training and tools for blockchain tracing; facilitate coordination between financial institutions and law enforcement; and require FinCEN reporting on digital assets’ role in reported scams. The measure remains proposed legislation and does not yet impose new requirements on advisers.

Who it affects

• Advisers assisting clients affected by cryptocurrency investment scams or elder financial exploitation
• Financial institutions coordinating fraud information with law enforcement
• State, local, and Tribal law-enforcement grant recipients

What is still open

• Whether the Senate will pass the bill and whether it will be enacted
• How participating agencies would implement grant-supported blockchain tracing and financial-sector coordination
• Whether future FinCEN reports would lead to additional reporting or fraud-control expectations

What it means for an advisor

• Monitor the bill’s progress rather than treating the House vote as a change in current law
• Review escalation procedures for suspected cryptocurrency scams involving elderly or vulnerable clients, including preservation of wallet and transaction information
• Maintain current fraud, privacy, and suspicious-activity procedures while awaiting any enacted requirements or implementing guidance