US Congress Considers ‘Letters of Marque’ for Private Crypto Crime Enforcement

The United States Congress is considering a groundbreaking legislative proposal that seeks to equip the government with an unprecedented mechanism for combating cross-border cryptocurrency crimes. This initiative revives a centuries-old legal concept, adapting it for the complexities of the digital financial landscape. The move signals Washington’s escalating concern over the resilience of crypto-related illicit activities operating beyond conventional regulatory reach.

• Congressman David Schweikert has introduced H.R. 4988, a bill designed to modernize the concept of “letters of marque.”
• Historically used to empower private seizure of enemy vessels, this authority would be extended to private entities or companies.
• These authorized private parties would pursue cybercrime groups targeting U.S. interests, recover stolen digital assets, and disrupt illegal networks.
• The legislation grants the power to employ “all reasonably necessary means” to apprehend foreign perpetrators or confiscate assets, including those linked to state-sponsored operations.
• To mitigate potential misuse and ensure accountability, each issued letter would be secured by a surety bond.

Modernizing “Letters of Marque” for Digital Warfare

Congressman David Schweikert has introduced H.R. 4988 in the House of Representatives, a bill designed to reintroduce and modernize the concept of “letters of marque.” Historically, these documents empowered private individuals or entities to seize enemy vessels on behalf of the government during wartime. Under the proposed bill, this authority would be extended to private entities or companies, enabling them to pursue cybercrime groups that target U.S. interests, recover stolen digital assets, and disrupt illegal networks. This framework significantly expands the nation’s capacity to counter sophisticated cryptocurrency threats that often evade traditional law enforcement tools.

Operational Scope and Accountability Measures

The legislation envisions granting authorized private parties the power to employ “all reasonably necessary means” to apprehend foreign perpetrators or confiscate assets linked to cybercrime. This scope explicitly includes operations connected to state-sponsored hacking or financial networks, areas where conventional governmental enforcement mechanisms have faced limitations. To mitigate potential misuse, the bill mandates that each issued letter be secured by a surety bond, ensuring accountability and adherence to U.S. directives.

A New Paradigm in Combating Digital Crime

While the U.S. Department of Justice and the Department of the Treasury have intensified their efforts against digital asset crimes in recent years, Congressman Schweikert’s proposal marks a distinct strategic shift. By leveraging a historical legal instrument and tailoring it to the blockchain era, the bill underscores a growing resolve within policymaking circles to combat crypto criminals operating internationally. If enacted, H.R. 4988 would represent one of the most assertive measures to date, fusing wartime legal principles with modern cybersecurity enforcement and potentially establishing a new class of private entities tasked with safeguarding U.S. financial interests in the digital realm.