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Adds a new subparagraph (E) to 2 U.S.C. 907(b)(2) requiring that rules subject to the congressional approval procedure in section 802 of title 5 that affect budget authority, outlays, or receipts be assumed effective for baseline/budget calculations unless they are not approved under that procedure.
Inserts new section 1116A (Criminal penalties) into the Right to Financial Privacy Act establishing criminal penalties for any agency or department of the United States or financial institution that knowingly obtains or discloses financial records in violation of the title (fine up to $5,000, imprisonment up to 5 years, dismissal for convicted officers/employees), and adding a good-faith defense for financial institutions relying on a Government authority certificate or section 1113(l).
Replaces paragraphs (1)–(4) of section 1117(a) with a new set of remedies consisting of (1) not less than $1,000 per violation per day; (2) reasonable attorney’s fees and litigation costs; and (3) compensatory damages.
Inserts new section 1118A (Other relief) providing that, in addition to other remedies, a writ of mandamus and all other appropriate relief, including equitable or declaratory relief, shall be available to require compliance with the procedures of the title.
Replaces subsection (e) to set an exception for de minimis payments by third party settlement organizations, making reporting required only if the amount which would be reported under subsection (a)(2) exceeds $20,000 and the aggregate number of such transactions exceeds 200.
Strikes the text of subsection (c)(3).
Adds a new paragraph to Section 13 of the Federal Reserve Act (12 U.S.C. 347d) prohibiting Federal reserve banks, the Board, the Secretary of the Treasury, other agencies or entities acting on their behalf from minting or issuing a central bank digital currency directly to individuals or digital currency intermediaries, offering related products or services directly to individuals, or maintaining accounts on behalf of individuals; and prohibiting Federal reserve banks from holding U.S.-minted/issued digital currencies as assets or liabilities or using such digital currencies to satisfy requirements under section 2A.
Strikes paragraph (2) of section 1108 and redesignates existing paragraphs (3) and (4) as paragraphs (2) and (3).
Repeals specified subsections of section 1113 (subsections (a), (d), (e), (f), (g), (i), (l), (m), (n), (p), (q), and (r)) and adds a new subsection (s) ('Access of records') prohibiting Federal Government access to financial records in a manner the Fourth Amendment prohibits and stating a sense of Congress about a statutory right to financial privacy.
Replaces current section 3402 with a new text that narrows permissible Government authority access to customer financial records so that, except as provided by limited other provisions, access is allowed only when records are reasonably described and disclosed in response to a search warrant meeting section 1106 requirements.
And 4 more affected sections...
Rewrites large parts of federal financial-privacy and supervisory law to tighten individuals’ financial privacy, restrict certain federal financial surveillance tools, and limit government control of some digital-money and market-data systems. It generally requires greater court authorization for government access to bank records, ends the Consolidated Audit Trail, bars the Federal Reserve and related agencies from issuing a retail central bank digital currency, raises third-party payment-reporting thresholds, strengthens criminal and civil penalties for improper access to financial records, and protects the right of people to use and self-custody convertible virtual currency. The bill also changes rulemaking oversight by increasing congressional review and requiring cost studies of rules, orders regulators to wind down certain programs and reimburse collected fees, and updates record-retention and Bank Secrecy Act provisions. Together these provisions affect banks, payment processors, securities firms, federal regulators, law enforcement access to financial data, and users of cryptocurrencies and self-hosted wallets.
Amend 12 U.S.C. 3402 (section 1102 of the Right to Financial Privacy Act) to state that no Government authority may access or obtain copies of a customer’s financial records unless the records are reasonably described and disclosed in response to a search warrant that meets the requirements of section 1106.
Strike specified sections of the Right to Financial Privacy Act (references to sections 1104, 1105, 1107, 1108 are removed as listed).
In 12 U.S.C. 3409(a) (section 1109(a)), remove a list of cross-references and replace them with a single reference to section 1106(c).
Amend 31 U.S.C. 5311 (Declaration of purpose) to state the purpose of the subchapter is to require financial institutions to retain transaction records that include information identified with or identifiable as being derived from the financial records of particular customers.
In 31 U.S.C. 5312(a), repeal subparagraphs (O), (Q), (S), (T), (V), (Y), and (Z) of paragraph (2).
Major affected groups include banks and other depository institutions, which must adapt to altered record-retention rules and stricter legal thresholds for government access to customer records. Consumers and account holders generally gain stronger privacy protections and new civil remedies; they may also see changes in how banks respond to regulatory and law-enforcement requests. Securities firms and market participants will be directly affected by the mandated termination of the Consolidated Audit Trail and the prohibition on recreating a similar PII database without Congress; market surveillance functions and vendor contracts will need review, and operators must reimburse collected CAT fees. Payment processors, marketplace platforms, and gig-economy or marketplace sellers will see reporting burdens reduced when payees do not exceed $20,000 and 200 transactions, which will lower some IRS third-party reporting but may reduce tax information available to authorities. Federal agencies and the Federal Reserve are constrained: agencies face new limits on building PII collections and on rulemaking discretion, while the Fed is expressly barred from creating or operating a retail CBDC or holding U.S.-issued digital currency on its books. Law enforcement and financial intelligence units could face reduced access to transaction data and surveillance tools, potentially requiring changes in investigative practice and coordination with banks. Cryptocurrency users and developers gain statutory protections for self-custody and ordinary purchases using convertible virtual currency, limiting some agency-level restrictions. Overall, the bill reduces certain federal surveillance and data-collection capabilities, shifts regulatory balances toward privacy and congressional oversight, and changes compliance and operational requirements across banking, payments, securities, and fintech sectors. Implementation will raise transitional costs, litigation risks, and coordination needs among regulators, financial institutions, and market infrastructures.
Read twice and referred to the Committee on Finance.
Introduced February 27, 2025 by Mike Lee · Last progress February 27, 2025
Expand sections to see detailed analysis
BLOCK Act
No CBDC Act
No CBDC Act
Saving Privacy Act
Read twice and referred to the Committee on Finance.
Introduced in Senate
