A bipartisan group of U.S. senators, led by Senate Banking Committee Chair Tim Scott (R-S.C.), has introduced legislation aimed at updating the Bank Secrecy Act (BSA) — the cornerstone of the country’s Anti-Money Laundering (AML) and counter-terrorism financing framework.

The proposed law, titled the STREAMLINE Act, seeks to modernize reporting thresholds that have remained unchanged for over five decades, thereby reducing compliance burdens on financial institutions while maintaining law enforcement’s ability to detect and prevent illicit activities.

Background: The Bank Secrecy Act and Its Role

Originally enacted in 1970, the Bank Secrecy Act requires banks, credit unions, and financial institutions to assist U.S. government agencies in detecting and preventing money laundering, terrorism financing, and related financial crimes.

Institutions must file two key types of reports:

• Currency Transaction Reports (CTRs): For cash transactions over $10,000.
• Suspicious Activity Reports (SARs): For transactions ranging from $2,000 to $5,000 that may indicate potential criminal activity.

Over time, inflation and rising transaction volumes have made these thresholds outdated, leading to excessive paperwork for financial institutions and increased regulatory costs.

Key Provisions of the STREAMLINE Act

The STREAMLINE Act proposes to:

• Raise the CTR threshold from $10,000 to $30,000.
• Increase the SAR reporting thresholds from $2,000–$5,000 to $3,000–$10,000, depending on the situation.
• Require the U.S. Treasury Department to adjust these thresholds every five years in line with inflation.

Senator Pete Ricketts (R-Nebraska) emphasized that these reforms reflect modern economic realities.

“After more than 50 years of inflation, the Bank Secrecy Act’s reporting thresholds are badly outdated. They must be modernized,” Ricketts said. “This bill cuts red tape for banks and credit unions while ensuring law enforcement still has the tools they need to do their job.”

Implications for the Crypto Industry

The Bank Secrecy Act applies not only to traditional financial institutions but also to U.S.-based cryptocurrency exchanges such as Coinbase and Kraken, which must comply with its AML and Know Your Customer (KYC) provisions.

By raising the thresholds and streamlining compliance requirements, the legislation could reduce administrative burdens on crypto firms that handle high transaction volumes, without loosening oversight on suspicious activity.

Broader Financial Regulation Developments

As Congress debates updates to financial laws, lawmakers and crypto industry leaders are simultaneously engaging on digital asset regulation and open banking initiatives.

On Tuesday, a coalition of fintech and crypto industry trade groups urged the Consumer Financial Protection Bureau (CFPB) to finalize an open banking rule. The groups argued that individuals — not banks — should own their financial data, enabling them to securely share it with third-party services through APIs.

Open banking plays a vital role in linking traditional finance (TradFi) with emerging sectors such as decentralized finance (DeFi), crypto payments, and digital banking.

Meanwhile, Senate Democrats, including Senator Kirsten Gillibrand (D-N.Y.), met with executives from Circle, Ripple, Kraken, Coinbase, Chainlink, and other companies to discuss the digital assets market structure bill — the Senate’s counterpart to the House’s CLARITY Act. The goal is to establish a unified federal framework for cryptocurrency oversight.

According to journalist Eleanor Terrett, who reported the discussions on X (formerly Twitter), “the senators as a group said they were committed to getting a bill done.”

Legislative Outlook

Although there is growing bipartisan momentum toward regulatory modernization, the ongoing U.S. government shutdown, which began on October 1, has delayed further progress.
The current shutdown is the third-longest in U.S. history, making it unlikely that the digital assets or AML modernization bills will advance until the government fully reopens.

Summary

The STREAMLINE Act represents a significant step toward updating America’s outdated financial reporting laws, balancing the goals of innovation, efficiency, and national security. By adjusting decades-old thresholds and engaging with emerging sectors like cryptocurrency and open banking, U.S. lawmakers aim to modernize the country’s approach to financial compliance for the digital age.

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