Current status is Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Rules, the Budget, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

119th CONGRESS

1st Session

H. R. 2155

1. Short title; table of contents
101. Bank Secrecy Act reforms
201. Warrant requirements and exceptions
301. Requirements and prohibitions regarding the Consolidated Audit Trail
401. Central bank digital currency
501. Purpose
502. Congressional review of certain agency rulemaking
503. Budgetary effects of rules subject to section 802 of title 5, United States Code
504. Government Accountability Office study of rules
601. Criminal penalties
602. Civil penalties
603. Other relief
701. Repeal of modification of exceptions for reporting of third party network transactions
801. Short title
802. Prohibition on restricting use of convertible virtual currency by a person to purchase goods or services for the person’s own use

1. Short title; table of contents

(a) Short title - This Act may be cited as the "Saving Privacy Act".

(b) Table of contents - The table of contents for this Act is as follows:

101. Bank Secrecy Act reforms

(a) Right to Financial Privacy Act of 1978 - The Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) is amended—

(1) Confidentiality of records—Government authorities - by amending section 1102 (12 U.S.C. 3402) to read as follows:

1102. Confidentiality of records—Government authorities

Except as provided by subsection (c) or (d) of section 1103 or section 1113, no Government authority may have access to or obtain copies of, or the information contained in the financial records of any customer from a financial institution unless the financial records are reasonably described and such financial records are disclosed in response to a search warrant which meets the requirements of section 1106.

(2) - by striking sections 1104 (12 U.S.C. 3404), 1105 (12 U.S.C. 3405), 1107 (12 U.S.C. 3407), and 1108 (12 U.S.C. 3408); and

(3) - in section 1109(a) (12 U.S.C. 3409(a)), by striking "section 1104(c), 1105(2), 1106(c), 1107(2), 1108(4)," and inserting "section 1106(c)".

(b) Title 31 - Chapter 53 of title 31, United States Code, is amended—

(1) Declaration of purpose - by amending section 5311 to read as follows:

5311. Declaration of purpose

It is the purpose of this subchapter 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.

(2) - in section 5312(a)—

(A) - in paragraph (2), by repealing subparagraphs (O), (Q), (S), (T), (V), (Y), and (Z); and

(B) - by amending paragraph (4) to read as follows:

(4) - nonfinancial trade or business means any entity engaged in trade or business other than a financial institution.

(3) - by striking sections 5313, 5314, 5315, 5316, 5317, 5318A, 5324, 5326, 5331, 5332, and 5336;

(4) - in section 5318—

(A) - in subsection (a)—

(i) - in the matter preceding paragraph (1), by striking "(except under section 5315 of this title and regulations prescribed under section 5315)";

(ii) - by striking paragraph (2); and

(iii) - by redesignating paragraphs (3) through (7) as paragraphs (2) through (6), respectively; and

(B) - in subsection (k)—

(i) - in paragraph (1)(C), by striking "has the same meaning as in section 5318A(e)(1)(B)" and inserting "means an account established to receive deposits from, make payments on behalf of a foreign financial institution, or handle other financial transactions related to such institution"; and

(ii) - in paragraph (3)(A)(i)—

(I) - in subclause (II), by adding "or" at the end;

(II) - in subclause (III), by striking "; or" and inserting a period; and

(III) - by striking subclause (IV);

(5) - in section 5321—

(A) - in subsection (a)—

(i) - in paragraph (1), by striking "(except sections 5314, 5315, and 5336 of this title or a regulation prescribed under sections 5314, 5315, and 5336)";

(ii) - by striking paragraphs (2), (3), (4), and (5);

(iii) - in paragraph (6), by striking "(except section 5336)" each place that term appears;

(iv) - in paragraph (7), by striking "or any special measures imposed under section 5318A"; and

(v) - by redesignating paragraphs (6) and (7) as paragraphs (2) and (3), respectively;

(B) - by striking subsection (c); and

(6) - in section 5322—

(A) - by striking "(except section 5315, 5324, or 5336 of this title or a regulation prescribed under section 5315, 5324, or 5336)" each place that term appears; and

(B) - in subsection (d)—

(i) - by striking ", or any special measures imposed under section 5318A,"; and

(ii) - by striking "or section 5318A";

(7) - in section 5325(a), in the matter preceding paragraph (1), by inserting after "$3,000" the following: "(as such amount is annually adjusted by the Secretary to reflect the percentage change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor)";

(8) - in section 5330(d)(1)—

(A) - in subparagraph (A), by adding "and" at the end;

(B) - by striking subparagraph (B); and

(9) - in section 5335—

(A) - by striking subsection (c); and

(B) - by redesignating subsections (d) and (e) as subsections (c) and (d), respectively;

(10) - by striking subchapter III; and

(11) - in the table of contents for chapter 53, by striking the items relating to—

(A) - sections 5313, 5314, 5315, 5316, 5317, 5318A, 5324, 5326, 5331, 5332, and 5336; and

(B) - subchapter III.

201. Warrant requirements and exceptions

The Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) is amended—

(1) - in section 1108 (12 U.S.C. 3408)—

(A) - by striking paragraph (2); and

(B) - by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively; and

(2) Access of records - in section 1113 (12 U.S.C. 3413)—

(A) - by repealing subsections (a), (d), (e), (f), (g), (i), (l), (m), (n), (p), (q), and (r); and

(B) Access of records - by adding at the end the following:

(s) Access of records -

(1) In general - Notwithstanding any other provision of this title, the Federal Government may not access the financial records or information of an individual in a manner that is prohibited by the Fourth Amendment to the Constitution of the United States with respect to the records or information in question.

(2) Aid in statutory construction - It is the sense of Congress that, through the enactment of this title, Congress has established a statutory right that ensures that the expectation of privacy that the people of the United States have with respect to financial records is protected.

301. Requirements and prohibitions regarding the Consolidated Audit Trail

(a) Definitions - In this section:

(1) Commission - The term Commission means the Securities and Exchange Commission.

(2) Consolidated Audit Trail - The term Consolidated Audit Trail means the consolidated audit trail and central repository created, implemented, and maintained pursuant to section 242.613 of title 17, Code of Federal Regulations, as in effect on the day before the date of enactment of this Act.

(3) Personally identifiable information - The term personally identifiable information—

(A) - means information that can be used to distinguish or trace the identity of an individual, either alone or when combined with other personal or identifying information that is linked or linkable to a specific individual, including the name, address, date or year of birth, Social Security number, telephone number, email, or IP-address of an individual; and

(B) - does not include a CAT–Order–ID or CAT–Reporter–ID, as those terms are defined in section 242.613(j) of title 17, Code of Federal Regulations (or any successor regulation).

(4) Self-regulatory organization - The term self-regulatory organization has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).

(b) Requirement - The Commission shall—

(1) - not later than 30 days after the date of enactment of this Act, and notwithstanding any other provision of law or regulation, terminate the Consolidated Audit Trail; and

(2) - not later that 120 days after the date of enactment of this Act, amend any regulation, no action letter, interpretive letter, exemptive letter, legal bulletin, or other guidance of the Commission to conform to the requirements of this section.

(c) Prohibitions - On and after the date that the Commission carries out the termination required under subsection (b)(1)—

(1) - neither the Commission nor any self-regulatory organization may administer the Consolidated Audit Trail; and

(2) - no Federal agency may establish any consolidated audit trail, central repository, or other centralized database that collects personally identifiable information of citizens of the United States, unless a duly enacted law of the United States specifically provides the Federal agency with the authority to take that action.

(d) Reimbursement of fees - Not later than 1 year after the date of enactment of this Act, Consolidated Audit Trail, LLC and FINRA CAT, LLC shall reimburse all fees collected by those entities before that date to carry out the Consolidated Audit Trail.

401. Central bank digital currency

Section 13 of the Federal Reserve Act is amended by adding after the 14th undesignated paragraph (12 U.S.C. 347d) the following:

- No Federal reserve bank, the Board, the Secretary of the Treasury, any other agency, or any entity directed to act on behalf of the Federal reserve bank, the Board, the Secretary, or other agency, may mint or issue a central bank digital currency directly to an individual (including a central bank digital currency issued to an individual through a custodial intermediary) or a digital currency intermediary, offer related products or services directly to an individual, or maintain an account on behalf of an individual (including an account in a specially designated account at a digital currency intermediary or supervised commercial bank). No Federal reserve bank may hold digital currencies minted or issued by the United States Government as assets or liabilities on a balance sheet of the bank or use such digital currencies as part of fulfilling the requirements under section 2A.

501. Purpose

The purpose of this title is to increase accountability for and transparency in the Federal regulatory process. Section 1 of article I of the United States Constitution grants all legislative powers to Congress. Over time, Congress has excessively delegated its constitutional charge while failing to conduct appropriate oversight and retain accountability for the content of the laws it passes. By requiring a vote in Congress, the REINS Act will result in more carefully drafted and detailed legislation, an improved regulatory process, and a legislative branch that is truly accountable to the American people for the laws imposed upon them.

502. Congressional review of certain agency rulemaking

(a) In general - Chapter 8 of title 5, United States Code, is amended to read as follows:

(b) Technical and conforming amendment - The chapter heading for chapter 8 of title 5, United States Code, is amended by inserting "certain" after "of".

503. Budgetary effects of rules subject to section 802 of title 5, United States Code

Section 257(b)(2) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 907(b)(2)) is amended by adding at the end the following new subparagraph:

(E) Budgetary effects of rules subject to section 802 of title 5, United States Code - Any rule subject to the congressional approval procedure set forth in section 802 of chapter 8 of title 5, United States Code, affecting budget authority, outlays, or receipts shall be assumed to be effective unless it is not approved in accordance with such section.

504. Government Accountability Office study of rules

(a) In general - The Comptroller General of the United States shall conduct a study to determine, as of the date of the enactment of this Act—

(1) - how many rules (as that term is defined in section 804 of title 5, United States Code, as added by this title) were in effect;

(2) - how many major rules (as that term is defined in section 804 of title 5, United States Code, as added by this title) were in effect; and

(3) - the total estimated economic cost imposed by all such rules.

(b) Report - Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress, and publish on the website of the Government Accountability Office, a report that contains the findings of the study conducted under subsection (a).

601. Criminal penalties

The Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) is amended by inserting after section 1116 (12 U.S.C. 3416) the following:

1116A. Criminal penalties

(a) - Except as provided in subsection (b), any agency or department of the United States or financial institution knowingly obtaining or knowingly disclosing financial records or information contained therein in violation of this title shall be fined in any amount not exceeding $5,000, or imprisoned not more than 5 years, or both, together with the costs of prosecution, and if such offense is committed by any officer or employee of the United States, the officer or employee shall, in addition to any other punishment, be dismissed from office or discharged from employment upon conviction for such offense.

(b) - Any financial institution or agent or employee thereof making a disclosure of financial records pursuant to this title in good-faith reliance upon a certificate by any Government authority or pursuant to the provisions of section 1113(l) shall not be subject to prosecution under subsection (a).

602. Civil penalties

Section 1117(a) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3417(a)) is amended by striking paragraphs (1) through (4) and inserting the following:

(1) - not less than $1,000 per violation per day;

(2) - reasonable attorney’s fees and litigation costs; and

(3) - compensatory damages.

603. Other relief

The Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.) is amended by inserting after section 1118 (12 U.S.C. 3418) the following:

1118A. Other relief

In addition to any other remedy contained in this title, a writ of mandamus and all other appropriate relief, including any equitable or declaratory relief, shall be available to require that the procedures of this title are complied with.

701. Repeal of modification of exceptions for reporting of third party network transactions

(a) In general - Section 6050W(e) of the Internal Revenue Code of 1986 is amended to read as follows:

(e) Exception for de minimis payments by third party settlement organizations - A third party settlement organization shall be required to report any information under subsection (a) with respect to third party network transactions of any participating payee only if—

(1) - the amount which would otherwise be reported under subsection (a)(2) with respect to such transactions exceeds $20,000, and

(2) - the aggregate number of such transactions exceeds 200.

(b) Conforming amendment - Section 6050W(c)(3) of the Internal Revenue Code of 1986 is amended by striking "described in subsection (d)(3)(A)(iii)".

(1) In general - The amendment made by subsection (a) shall apply to returns for calendar years beginning after December 31, 2021.

(2) Clarification - The amendment made by subsection (b) shall apply to transactions after the date of the enactment of the American Rescue Plan Act of 2021.

801. Short title

- This title may be cited as the "Keep Your Coins Act".

802. Prohibition on restricting use of convertible virtual currency by a person to purchase goods or services for the person’s own use

(a) In general - No Federal agency head may prohibit or otherwise restrict the ability of a covered user to—

(1) - use virtual currency or its equivalent for such user’s own purposes, such as to purchase real or virtual goods and services for the user’s own use; or

(2) - conduct transactions through a self-hosted wallet.

(b) Definitions - In this section:

(1) Convertible virtual currencies - The term convertible virtual currencies means a medium of exchange that—

(A) - has an equivalent value as currency (as defined in section 1010.100 of title 31, Code of Federal Regulations (or successor regulations)); or

(B) - acts as a substitute for currency but may not possess all the attributes (including legal tender status) specified under such section 1010.100.

(2) Covered user - The term covered user means a person that obtains convertible virtual currency to purchase goods or services on that person’s own behalf, without regard to the method in which such covered user obtained such convertible virtual currency.

(3) Self-hosted wallet - The term self-hosted wallet means an interface—

(A) - used to secure and transfer convertible virtual currency; and

(B) - under which the owner of convertible virtual currency retains independent control over such convertible virtual currency that is secured by such digital interface.

119-HR2155

Saving Privacy Act