Analyst Brief September 14, 2026

H.R. 2978 — GUARD Act

Current Status

Reported from the Committee on Financial Services with an amendment

Executive Summary

The GUARD Act of 2026 expands the permissible use of existing federal law enforcement grants to explicitly cover investigations into elder financial fraud, 'pig butchering' cryptocurrency scams, and general financial fraud. As sophisticated financial crimes and digital asset scams increasingly target vulnerable populations, state and local agencies often lack the resources and technical expertise to trace blockchain transactions. This bill bridges that gap by allowing grant funds to be used for hiring experts, acquiring blockchain tracing software, and training, while mandating comprehensive reporting from FinCEN on the state of financial scams in the U.S.

Bill Data

Primary Sponsor

Rep. Zach Nunn (R-IA)

Bill Number

H.R. 2978

Session

119th

Co-Sponsors

Rep. Josh GottheimerRep. Scott Fitzgerald
View on Congress.gov ↗

Arguments For

  • Provides critical resources and modern tools (blockchain tracing) to underfunded local police departments facing highly sophisticated transnational criminal networks.
  • Offers strong political cover by protecting vulnerable seniors and retirees from devastating financial ruin without necessarily appropriating new funds (repurposes existing grants).

Likely Supporters

AARPFraternal Order of PoliceBlockchain analytics firms (e.g., Chainalysis)National Association of Attorneys General

Arguments Against

  • Diverts existing grant funds (like VAWA or COPS) away from their original core purposes (e.g., violent crime, domestic abuse) toward complex financial investigations.
  • May impose burdensome reporting requirements on local law enforcement agencies that use the funds, requiring detailed statistics and efficacy assessments within one year.

Likely Opponents

Privacy and civil liberties advocates (concerns over expanded blockchain surveillance and fusion center data sharing)Domestic violence advocacy groups (concerns over diverting VAWA funds)

📋 Key Provisions

  • Authorizes the use of specific federal grants (e.g., COPS Technology and Equipment Program, VAWA cybercrime grants) for investigating elder fraud and 'pig butchering' scams.
  • Permits funds to be used for hiring specialized analysts, acquiring blockchain intelligence tools, and conducting tabletop exercises with financial institutions.
  • Mandates that FinCEN submit a comprehensive report to Congress within one year on federal efforts to combat these financial crimes, and a biennial report on the state of scams in the U.S.
  • Clarifies that federal law enforcement agencies may assist state, local, and Tribal agencies and fusion centers in utilizing blockchain tracing tools.
search Verification Guide BETA expand_more

Don't trust AI? Don't worry, neither do I. Verify the claims yourself.

Claim Analysis Page 5, Line 8

Defines 'pig butchering' as a confidence fraud generally involving cryptocurrency.

Verify Text

"generally in the form of cryptocurrency"

Claim Analysis Page 6, Line 13

Allows grant funds to be used for blockchain intelligence tools.

Verify Text

"the use of blockchain intelligence tools"

Claim Analysis Page 8, Line 22

Requires FinCEN to report on the state of scams within 2 years.

Verify Text

"Not later than 2 years after"

Claim Analysis Page 10, Line 23

Federal agencies can assist local fusion centers with blockchain tracing.

Verify Text

"ters in the use of tracing tools"