The United States Congress has begun a major reform of the Bank Secrecy Act (BSA) through the proposed STREAMLINE Act. This initiative aims to update reporting thresholds —unchanged for over 50 years— to better detect financial crimes and align regulations with modern realities, including those of the Bitcoin and Ethereum sectors.

History and Purpose of the Bank Secrecy Act

Enacted in 1970, the Bank Secrecy Act serves as a cornerstone of the U.S. effort to combat money laundering and other financial crimes. It requires financial institutions to report suspicious transactions and maintain detailed records to assist federal authorities.

However, the reporting thresholds—such as the $10,000 limit for cash deposits—have not been adjusted for inflation or the evolution of the financial system. This has led to an overload of reports and reduced regulatory efficiency.

Key Reforms Proposed by the STREAMLINE Act

The STREAMLINE Act proposes raising the minimum thresholds for financial transaction reporting to reduce bureaucracy and focus resources on genuinely suspicious activities. Key changes include:

• Raising the cash deposit reporting threshold: Adjusting the $10,000 limit to reflect inflation and transaction growth.
• Regulatory relief for banks and crypto companies: Higher limits would reduce unnecessary reports and improve oversight efficiency.
• Encouraging advanced technology adoption: Promotes the use of modern tools to detect fraud and illicit activities.

Impact on Cryptocurrency Regulation

The inclusion of cryptocurrency companies under the BSA’s scope is increasingly relevant as adoption of digital assets like Bitcoin and Ethereum grows. The STREAMLINE Act could:

• Reduce bureaucratic burden for exchanges and custodians by limiting trivial reporting and streamlining operations.
• Enhance regulatory focus by allowing authorities to prioritize high-risk transactions.
• Promote innovation in AML compliance through the adoption of advanced monitoring and fraud-detection systems.

However, experts warn that higher thresholds must be paired with strict oversight to avoid regulatory loopholes that malicious actors could exploit within this dynamic ecosystem.

Regulatory Outlook and Interagency Coordination

The STREAMLINE Act is part of a broader effort to balance financial innovation with national security and financial integrity. The proposal includes:

• Modernizing reporting processes through emerging technologies and new business models.
• Strengthening coordination among federal agencies to enhance supervision and information sharing.
• Setting clear standards for crypto-sector customer identification, in line with international regulations.

This reform could lay the groundwork for a comprehensive modernization of the U.S. anti–money laundering (AML) framework—one that fits the digital finance era without compromising crime prevention.

Conclusion

The STREAMLINE Act represents a pivotal step in modernizing the Bank Secrecy Act after five decades of stagnation. By raising reporting thresholds and simplifying compliance for banks and crypto firms, it seeks more effective and less burdensome oversight.

For the cryptocurrency industry, this update may mean greater operational efficiency and smarter regulation—provided rigorous monitoring remains in place. Ultimately, the initiative paves the way for a financial regulatory system better aligned with today’s technological and economic realities.