Key Takeaways
- The legislation would allow the US President to issue modern versions of “letters of marque and reprisal”—legal authorisation historically used to commission privateers to seize enemy vessels.
- The scope of actions covered is broad and includes unauthorised access to U.S. systems, identity theft, ransomware attacks, “pig-butcher” style frauds, crypto theft, and trafficking in passwords
In a major development, a bill introduced in the U.S. House of Representatives aims to empower private entities to recover stolen digital property and combat cyber-enabled financial crimes, including those involving crypto.
Named the Scam Farms Marque and Reprisal Authorisation Act of 2025 (H.R. 4988), the bill was sponsored by Rep. David Schweikert (R–Arizona) on 15 August 2025. It is currently under consideration by the House Foreign Affairs Committee.
At its core, the legislation would allow the US President to issue modern versions of “letters of marque and reprisal”—legal authorisation historically used to commission privateers to seize enemy vessels.
Under the proposal, those letters could now apply to cybercriminals who operate beyond U.S. shores. Private parties granted such letters would be authorised to seize digital assets, including crypto tokens, from individuals or groups responsible for unlawful cyber activity.
The scope of actions covered is broad and includes unauthorised access to U.S. systems, identity theft, ransomware attacks, “pig-butcher” style frauds, crypto theft, and trafficking in passwords.
Pig butchering refers to an online investment scam where scammers gain the trust of victims over time and then deceive them into investing in fake crypto assets. The legislation specifies that these offences would only qualify if they fall under existing federal laws governing such crimes.
Further, the bill introduces a safeguard: anyone receiving a letter of marque must post a security bond. This requirement is meant to ensure the recipient complies with the terms laid out by the President and acts responsibly in pursuit of criminal actors.
Rep. Schweikert has argued that traditional law enforcement methods no longer suffice against networked, foreign-based scam operations, especially those targeting digital asset holders. He sees this measure as a way to restore accountability and restitution amid a growing number of cross-border crypto frauds.
