New Bill Mandates Warrants for Bank Records, Halts SEC Data Program, and Overhauls Federal Rulemaking

The Saving Privacy Act is a sweeping piece of legislation aiming to reshape how the government interacts with your financial information and how federal agencies create regulations. At its core, the bill introduces significant changes across several areas: it mandates court-ordered warrants for government access to financial records held by institutions (amending the Right to Financial Privacy Act and Bank Secrecy Act), orders the shutdown of a major stock market surveillance program, prohibits the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals, and fundamentally alters how federal regulations are approved and reviewed.

Your Money, Your Privacy?

One of the biggest shifts is how federal agencies could access your bank records. Title I and Title II require the government to obtain a specific type of warrant before demanding financial records from banks or other financial institutions about their customers. This raises the bar significantly compared to some current practices. Think of it like this: instead of potentially using administrative subpoenas for certain requests, agencies would generally need a judge's approval based on probable cause, similar to searching your home. While this boosts privacy protection, it could also slow down investigations, from tax audits to national security probes, as agencies navigate the new legal hurdles. The bill also adds teeth, introducing criminal penalties (up to $5,000 fine, 5 years prison) for officials who knowingly violate these rules and increasing civil penalties for institutions (Title VI).

Shutting Down Data Streams and Digital Dollars

The bill takes aim at large-scale data collection. Title III mandates the termination of the Consolidated Audit Trail (CAT) within 30 days. The CAT was designed to track all U.S. stock market activity down to the individual order level – a massive undertaking proponents said was needed for market oversight, but critics worried about privacy and data security. The bill not only shuts down CAT but prohibits federal agencies from creating similar databases collecting personal information without specific legal authorization. Furthermore, Title IV explicitly forbids the Federal Reserve or Treasury from issuing a U.S. CBDC – a digital version of the dollar – directly to individuals or maintaining accounts for them. This effectively halts exploration of a Fed-issued digital currency accessible by the general public, preserving the current financial structure but potentially limiting future payment innovations.

Putting Congress Back in the Regulatory Driver's Seat

Get ready for a potential shake-up in how federal rules get made. Title V introduces measures mirroring the REINS Act, designed to increase congressional control over federal agencies. Any new "major rule" – defined as having an economic impact of $100 million or more annually – would require explicit approval from both houses of Congress via a joint resolution before taking effect. Agencies would also need to publish extensive cost-benefit analyses, including job impacts and effects on inflation. For non-major rules, Congress gets a window to pass a resolution disapproving them. The idea is to make agencies more accountable to Congress, but the practical effect could be significant delays or gridlock in implementing new regulations, affecting everything from environmental standards to workplace safety rules, depending on the political climate. Agencies also face a mandate to review 20% of their existing rules annually for five years, with rules expiring if not re-approved by Congress.

Crypto Freedom and Tax Reporting Rollback

The bill touches on digital assets and online income. Title VII rolls back a recent change to tax reporting requirements for third-party payment networks (like PayPal or Venmo). It restores the previous threshold, meaning these platforms only need to send you (and the IRS) a Form 1099-K if you receive over $20,000 and have more than 200 transactions in a year, reversing the much lower $600 threshold implemented recently. This is a relief for casual sellers and side hustlers but might reduce tax compliance visibility. Title VIII, the "Keep Your Coins Act," prohibits federal agencies from restricting individuals using "convertible virtual currency" (like Bitcoin) for personal purchases through self-hosted wallets (meaning wallets where you control the private keys). While protecting personal crypto use, the definition of "personal use" and how it interacts with existing anti-money laundering regulations remains an area to watch.