Crypto and Banking Experts Urge Congress to Modernize the Bank Secrecy Act

Representatives from the cryptocurrency sector, banking officials, and policy experts have jointly called on the U.S. Congress to update the Bank Secrecy Act (BSA). The experts argue that current regulations inadequately address the unique characteristics of digital assets, negatively impacting both the fight against financial crime and the industry's growth. Emphasizing the need to modernize the BSA, the group is demanding clearer rules, particularly regarding the monitoring and reporting of cryptocurrency transactions. They note that the existing legal framework, focused on the traditional banking system, creates gaps in the transfer and custody of crypto assets. The experts contend that an updated BSA would be more effective in preventing crimes such as money laundering and terrorist financing. They also state that regulatory clarity would boost investment in the crypto sector and encourage innovation. Proposals submitted to Congress include stricter identity verification and transaction reporting obligations for crypto exchanges. This call is seen as part of increasing pressure for cryptocurrency regulation in the U.S. Industry representatives warn that legal uncertainty could cause the U.S. to fall behind in the global financial technology race. Congress is expected to hold hearings on the matter in the coming months. This is not investment advice.