TLDR
- The CTR threshold will rise from $10,000 to $30,000 under the new bill.
- SAR thresholds will increase from $2,000–$5,000 to $3,000–$10,000.
- Treasury must adjust BSA thresholds every five years for inflation.
- Crypto firms like Coinbase and Kraken must comply with BSA rules.
For the first time in more than five decades, Congress is working to raise the outdated reporting thresholds under the Bank Secrecy Act. Lawmakers say the current limits no longer match today’s economic conditions and place an unnecessary burden on financial institutions. A new bill has been introduced to modernize these rules, making compliance easier for banks, credit unions, and crypto platforms.
Lawmakers Push to Update AML Reporting Rules
A group of U.S. senators, led by Senate Banking Committee Chair Tim Scott, has introduced the STREAMLINE Act. This legislation aims to modernize the Bank Secrecy Act (BSA), which has been in place since 1970. The BSA is the cornerstone of the U.S. Anti-Money Laundering (AML) framework. It requires financial institutions to report certain transactions to federal authorities to help detect and prevent financial crimes.
The bill proposes to increase the reporting thresholds that trigger Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs). Under the current law, CTRs must be filed for transactions above $10,000, while SARs are required for amounts between $2,000 and $5,000, depending on the level of suspicion. The new proposal raises the CTR threshold to $30,000 and adjusts SAR thresholds to $3,000 and $10,000.
The Treasury Department would also be required to review and adjust these thresholds every five years to account for inflation.
Support for Reducing Regulatory Burden
Senator Pete Ricketts, a supporter of the bill, said that inflation over the last 50 years has made the current thresholds outdated. “After more than 50 years of inflation, the Bank Secrecy Act’s reporting thresholds are badly outdated. They must be modernized,” he said.
He also noted that the bill will reduce unnecessary regulatory pressure on financial institutions while still allowing law enforcement to access key information. This change is expected to ease the compliance burden on banks, credit unions, and digital asset platforms without reducing the government’s ability to track suspicious financial activity.
The proposal comes at a time when both traditional and digital financial services are expanding rapidly. Many in the crypto sector have long expressed concern that outdated AML rules do not fit well with newer technologies and business models.
Crypto Firms Also Required to Comply
Crypto exchanges based in the U.S., such as Coinbase and Kraken, are also required to comply with the Bank Secrecy Act. The same rules that apply to banks also apply to digital asset firms when it comes to AML reporting. As the industry continues to grow, crypto companies are pushing for regulatory clarity that reflects the current market.
At the same time, Senate Democrats recently met with executives from major crypto firms including Circle, Ripple, Kraken, Coinbase, and Chainlink. The meeting focused on the Senate version of the House’s CLARITY Act, a bill that seeks to define a clear federal structure for digital asset oversight.
According to a post from journalist Eleanor Terrett, the senators involved said they are committed to advancing a bill that addresses market structure for digital assets.
Push for Broader Financial Data Rules and Open Banking
In a related move, several fintech and crypto trade groups sent a letter to the Consumer Financial Protection Bureau (CFPB) earlier this week. The letter urged the CFPB to finalize an open banking rule that gives consumers full control over their financial data.
Open banking allows users to share their financial data securely with third-party apps through APIs. This system helps link traditional banking with newer platforms in areas like decentralized finance (DeFi), crypto payments, and digital wallets. The groups said that clear data ownership rules are essential for growth and innovation in financial services.
