Stephen J. Cox, Attorney General for the State of Alaska, said that Alaska's approach to cryptocurrency enforcement should encourage innovation while targeting prosecutions on malicious actors. This comment was made following a question posed by Brenna Bird from the Cryptocurrency Anti-Fraud Education (CAFE) Association during a Federalist Society panel.
"We want to foster innovation," said Cox. "You gotta make sure that you go after the bad actors. You have to go after the bad actors."
According to Globe Banner's report on the Federalist Society National Lawyers Convention panel, Edward "Coach" Weinhaus of the CAFE Association inquired whether stricter crypto enforcement could lead to "overzealous prosecution." In response, Bird compared modern crypto kiosk scams to older frauds involving gift cards and mailed cash. Derek Brown emphasized balancing enforcement with innovation. Cox reiterated that states aim to "foster innovation" but must also "go after the bad actors," aligning Alaska with this targeted approach.
Business Daily reported that Bird responded to Weinhaus by saying, "Con artists used to do gift cards, they used to do mailing cash, and they still do, but we found that the crypto kiosks were the way that many innocent people were losing an incredible amount of money." Her remarks highlighted how scammers adapt to new tools. Following Bird's comments, Cox said, "We want to foster innovation," but emphasized the need to target bad actors, supporting a model that addresses scammers without hindering legitimate technology.
Globe Banner further reported that during the same panel discussion, Weinhaus urged attorneys general to focus on scammers rather than compliant crypto kiosks serving unbanked or underbanked users. He warned that poorly targeted crackdowns could harm legitimate access while leaving real fraudsters untouched. This perspective aligns with CAFE’s mission of industry-supported best practices and consumer protection and echoes Cox’s view that regulators must target bad actors while fostering innovation.
Cox was appointed Attorney General of Alaska by Governor Mike Dunleavy in 2025. He has a notable record of federal service and results-driven enforcement. Previously serving as U.S. Attorney for the Eastern District of Texas, he managed significant criminal, civil, and public-integrity cases and held senior leadership roles at the U.S. Department of Justice focusing on fraud prevention and regulatory reform. As Alaska’s chief legal officer, Cox oversees statewide criminal and civil litigation and advises executive agencies on initiatives balancing innovation with public protection.
The CAFE Association is a nonprofit focused on preventing crypto-related fraud across the digital-asset ecosystem. It aims to build an industry-supported framework centered on consumer protection through education and collaboration among practitioners, researchers, and policymakers. Its mission includes protecting consumers through accessible resources and establishing industry best practices while strengthening trust in digital financial systems through transparency and accountability.
