Saving Privacy Act

Full Title:
Saving Privacy Act

Summary#

The Saving Privacy Act would change several federal rules about financial records, regulatory review, and digital currencies. Key parts of the bill: it amends the Right to Financial Privacy Act and parts of the Bank Secrecy Act to limit when government authorities can access customers' financial records, generally requiring a search warrant for those records. It removes or revises many existing Bank Secrecy Act provisions and changes some definitions and reporting rules. The bill directs the Securities and Exchange Commission to terminate the Consolidated Audit Trail (CAT), prohibits federal agencies and self-regulatory organizations from running a centralized database that collects personally identifiable information unless Congress specifically authorizes it, and requires CAT entities to reimburse fees collected before termination.

The bill adds a new restriction in the Federal Reserve Act that would bar the Federal Reserve and related agencies from issuing a central bank digital currency (CBDC) directly to individuals or from holding U.S. digital currencies on a Reserve bank balance sheet. It creates a new chapter in title 5, U.S. Code, to require Congress to review and approve "major rules" (including a process for joint resolutions of approval), and it directs a Government Accountability Office study on rules and costs. The bill increases criminal and civil penalties for unlawful access to or disclosure of financial records, adds a right to seek mandamus and other relief, adjusts tax reporting thresholds for third-party payment networks, and bars federal agencies from restricting individuals' use of convertible virtual currency or self-hosted wallets.

What it means for you#

  • If enacted, most government access to a person's bank or financial records would need a search warrant as described in the amended Right to Financial Privacy Act.
  • The SEC would be required to terminate the Consolidated Audit Trail and related entities would repay fees collected before termination.
  • The Federal Reserve and related agencies would be barred from issuing a retail central bank digital currency or keeping U.S. digital currencies on Reserve balance sheets.
  • Major agency rules could not take effect unless Congress approves them under the new congressional review process added to title 5.
  • The bill raises criminal and civil penalties for unlawful obtaining or disclosure of financial records and provides additional legal remedies for affected persons.
  • Third-party payment reporting thresholds would be set to $20,000 and more than 200 transactions for reporting by settlement organizations, for the years specified.
  • Federal agencies would be prohibited from stopping individuals from using convertible virtual currency to buy goods or services or from using self-hosted wallets.

Expenses#

  • The bill requires Consolidated Audit Trail, LLC and FINRA CAT, LLC to reimburse fees they collected before the date of enactment within 1 year.
  • The text sets criminal penalties (up to $5,000 and/or up to 5 years in prison for violations by an agency or financial institution) and civil penalties (not less than $1,000 per violation per day, plus attorney fees and compensatory damages) but does not provide a government cost estimate.
  • The bill directs a Government Accountability Office study and a report to Congress within 1 year; the bill text does not include an overall budget or cost estimate for federal agencies. No publicly available information on total federal budgetary effects is provided in the bill text.

Proponents' View#

The bill's stated purpose (in Title V) says it would increase accountability and transparency in federal rulemaking, return more control to Congress over major regulations, and better protect Americans' expectation of privacy in financial records by requiring warrants and stronger legal remedies.

Opponents' View#

No publicly available information.