US Lawmakers Propose Major Changes to Anti-Money Laundering Regulations
A bipartisan group of US senators, led by Senate Banking Committee Chair Tim Scott (R-S.C.), has introduced new legislation to update the Bank Secrecy Act (BSA). The proposed bill seeks to modernize one of the country�s core Anti-Money Laundering (AML) laws, which has remained mostly unchanged since its adoption in 1970. The changes have direct implications for banks, credit unions, and crypto exchanges operating in the United States.
Key Provisions of the STREAMLINE Act
The legislation, named the STREAMLINE Act, proposes raising the threshold for Currency Transaction Reports (CTR) from $10,000 to $30,000. Additionally, it would increase Suspicious Activity Report (SAR) thresholds from $2,000 to $3,000 and from $5,000 to $10,000, depending on the type of activity. The bill also mandates that these reporting thresholds be reviewed and adjusted for inflation every five years by the Treasury Department.
- CTR threshold rises to $30,000
- SAR thresholds raised to $3,000 and $10,000
- Mandatory inflation adjustments every five years
The BSA currently requires financial institutions to flag cash transactions above $10,000 and file SARs for transactions involving $2,000 to $5,000 if they suspect criminal activity. Lawmakers argue that inflation has eroded the effectiveness of these thresholds, causing excessive reporting and administrative strain.
Implications for Crypto Exchanges
The Bank Secrecy Act applies broadly, covering traditional banks as well as US-based crypto exchanges such as Kraken. These companies must monitor and report certain transactions, making compliance a core operational concern. Senator Pete Ricketts said the proposed changes aim to "cut red tape for banks and credit unions" while maintaining law enforcement�s ability to track illicit finance.
Growing Policy Engagement in Crypto
In parallel with the BSA update, industry groups continue to engage with regulators and lawmakers. A coalition of technology and financial firms recently called on the Consumer Financial Protection Bureau (CFPB) to finalize an open banking rule, emphasizing that consumers�not banks�should own and control their financial data. Open banking is seen as a critical bridge between traditional finance and emerging sectors like decentralized finance (DeFi) and digital banking.
Meanwhile, Senate Democrats have met with leaders from several major crypto firms to discuss a US market structure bill. The meeting included representatives from Circle, Ripple, Kraken, Coinbase, and Chainlink. According to reporting by Eleanor Terrett, the senators expressed a firm commitment to passing comprehensive digital asset regulations.
Uncertain Legislative Timeline
The discussions and legislative proposals come amid a government shutdown, which has now become the third-longest in US history. As a result, a vote on the new market structure bill, or the BSA modernization package, is unlikely until the government reopens.
The proposed adjustments to the Bank Secrecy Act mark a significant effort to adapt financial crime detection measures to current economic realities, while also impacting the compliance obligations of both traditional and digital asset service providers.
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