HR2155-119

What This Bill Does

The Saving Privacy Act is a broad financial privacy and regulatory review bill. It tightens access to customer financial records by requiring government authorities to use a search warrant for reasonably described financial records and by repealing many Bank Secrecy Act reporting provisions. It terminates the SEC Consolidated Audit Trail within 30 days, requires conforming SEC regulations within 120 days, and bars federal agencies from creating centralized databases of U.S. citizens' personally identifiable information unless Congress specifically authorizes them. It prohibits the Federal Reserve, Treasury, and other federal agencies from issuing a retail central bank digital currency, directly or through intermediaries, and from maintaining individual accounts. It also applies a REINS-style congressional approval system to major financial-agency rules, adds criminal penalties for unlawful financial-record access or disclosure, restores the pre-ARPA 1099-K threshold of more than $20,000 and more than 200 transactions, and protects self-hosted wallet use for lawful purchases.

Who Benefits and How

Bank customers benefit because government access to financial records would generally require a warrant instead of broad administrative access. Retail payment app users benefit because the bill restores the higher 1099-K reporting threshold for third-party settlement networks. Self-custody virtual currency users benefit because federal agencies could not restrict use of convertible virtual currency through a self-hosted wallet for the user's own purchases. Securities traders benefit from the termination of the Consolidated Audit Trail's centralized transaction database. Congressional banking committees benefit because major financial-agency rules would need affirmative legislative approval before taking effect. Financial institution compliance officers benefit from repeal of several BSA reporting duties and a clearer warrant-centered records process.

Who Bears the Burden and How

SEC compliance staff must wind down Consolidated Audit Trail administration, conform regulations and guidance, and oversee reimbursement of collected CAT fees. The Federal Reserve Board loses authority to issue or intermediate a retail central bank digital currency or maintain individual CBDC accounts. Treasury Department offices lose several BSA reporting and special-measure authorities and must operate under narrower financial-record access rules. Federal agency rulemaking staff must submit rules, cost-benefit analyses, and constitutional-authority statements for congressional review. IRS tax administrators must apply the restored 1099-K threshold for third-party settlement reporting. FINRA CAT administrators must reimburse collected fees after the Consolidated Audit Trail is terminated.

Key Provisions

• Requires search warrants for government access to reasonably described financial records.
• Repeals major Bank Secrecy Act reporting, beneficial ownership, foreign-account, and special-measure authorities.
• Terminates the Consolidated Audit Trail and requires fee reimbursement within one year.
• Prohibits federal agencies from issuing retail central bank digital currency or maintaining individual CBDC accounts.
• Requires congressional approval for major financial-agency rules and review of existing rules.
• Creates criminal penalties and employment consequences for unlawful financial-record access or disclosure.
• Restores the 1099-K threshold to more than $20,000 and more than 200 transactions.
• Protects self-hosted wallet use for lawful personal purchases with convertible virtual currency.