Sponsor
Andy Ogles
Representative · R-TN
Representative · R-TN
The bill significantly strengthens individual financial‑privacy rights and remedies and limits certain government and centralized data uses, but does so at the cost of reduced investigatory and oversight tools, higher compliance and litigation risk for financial firms, and short‑term operational and enforcement trade‑offs.
Individual account holders (taxpayers, patients, immigrants) gain stronger statutory and constitutional financial-privacy protections and new remedies: many government accesses will require a §1106-like warrant, a statutory privacy right is recognized, and victims can recover damages and equitable relief.
Market participants and customers are protected from a centralized FINRA/SEC 'CAT' database: termination reduces a single-target data-breach risk and requires refunding CAT fees to affected broker-dealers/customers.
Commercial banks and their customers keep existing intermediary roles because the Fed is barred from offering retail accounts or issuing a direct CBDC to individuals, preserving current banking relationships and limiting direct government custody of payment data.
Law enforcement, tax, sanctions, and national-security investigations will face higher legal and practical barriers to access financial records (and lose some centralized market surveillance), likely slowing some probes and reducing oversight ability.
Banks, brokers, fintechs, and other intermediaries face greater compliance, litigation, and liability exposure—from new retention duties, repeal of certain exceptions, mandated fee reimbursements, and large per‑violation statutory damages—raising operational costs likely passed to customers.
Near-term operational disruption and regulatory implementation risk: abrupt CAT termination, short SEC transition timelines, and new rule-approval/reporting steps could disrupt exchanges, brokers, and agency rulemaking and slow important regulatory actions.
Based on analysis of 16 sections of legislative text.
Generally requires warrants for government access to financial records; ends SEC's CAT; bans Fed retail CBDC; raises penalties; raises TPSO reporting de minimis; protects crypto self‑custody.
Official title: To amend the Right to Financial Privacy Act of 1978 to preserve the confidentiality of certain records, and for other purposes.
Introduced March 14, 2025 by Andy Ogles · Last progress March 14, 2025
Limits federal and other government access to Americans' financial records by generally requiring search warrants; ends the SEC's Consolidated Audit Trail (CAT) and bans new centralized audit databases without express congressional authorization; forbids the Federal Reserve and related entities from issuing or operating a retail central bank digital currency (CBDC); increases criminal and civil penalties for unlawful access to financial records; raises reporting de minimis thresholds for certain third‑party payment processors; protects individuals' ability to use convertible virtual currencies and self‑hosted wallets; and creates a new congressional approval route for some executive rules. The bill makes broad, substantive changes to the Right to Financial Privacy Act and large parts of the Bank Secrecy Act, adds enforcement remedies, and changes regulatory and administrative authorities across financial and rulemaking systems.