A group of US senators led by Senate Banking Committee Chair Tim Scott (RS.C.) has introduced legislation to modernize the Bank Secrecy Act, the cornerstone of the anti-money laundering (AML) framework.
The Bank to the Bank of the Bank, passed In 1970, banks, credit unions, and other financial institutions were obligated to help federal authorities detect and prevent financial crimes, including money laundering, terrorist financing, and related illicit activities.
The proposed legislation, known as the Streamline Act, would raise the Bank Secrecy Act’s reporting thresholds for the first time since it was created more than 50 years ago.
The bill increases The Current Account Report (CTR) threshold to $ 30,000 from $ 10,000 and the Suspicious Report (SAR) thresholds from $ 2,000 to $ 3,000 and $ 5,000 to $ 10,000, while requiring the Treasury Department to adjust these amounts every five years to account for inflation.
Under current law, financial institutions must file CTRs for cash transactions over $10,000 and SARS for transactions involving $2,000 to $5,000, depending on the level of suspicion or evidence of criminal activity.
https://www.youtube.com/watch?v=ry9mi57pbjs
Senator Pete Ricketts, who supports the bill, said, “After more than 50 years of inflation, the Bank Secrecy Act’s reporting thresholds are outdated. They must be modernized.”
He added that the new bill “Cuts Red Tape for Banks and Credit Unions,” ensuring that “law enforcement still has the tools they need to do their job.”
US based crypto exchanges Coinbase and Kraken is also required to comply with the Bank Secrecy Act.
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Crypto leaders and legislators meet
As lawmakers propose greater financial regulation, industry groups are increasing their involvement in policy.
On Tuesday, a coalition of FinTech and Crypto Industry Trade Group Write a letter to the US Consumer Financial Protection Bureau (CFPB) urging it to end an open banking rule that certifies individuals, not banks, own their financial data.
Open Banking, which allows consumers to share financial data with third-party apps through APIs, serves as a key link between traditional finance and sectors such as decentralized finance (Defi), crypto payment networks and digital banking platforms.
Meanwhile, Senate Democrats held talks with crypto industry leaders on the US market structure bill, the Senate counterpart to House Cleanliness Actwhich aims to create a unified federal framework for digital asset regulation. On Wednesday, Senator Kirsten Gillibrand and several other Senate Democrats met with crypto industry leaders from Circle, Ripple, Kraken, Coinbase Chainlink and others.
According to a post from journalist Eleanor Terrett at X, “senators as a group say they are committed to crafting a bill.”
The US government is Shut down since October 1marking the third longest shutdown in US history. It is unlikely that there will be a vote on Digital Assets Market Structure Bill Until it changes.
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