S.809 - Saving Privacy Act (119th Congress)
Summary
The Saving Privacy Act (S.809) aims to amend several existing laws, primarily focusing on financial privacy and regulatory oversight. Key provisions include reforms to the Bank Secrecy Act, amendments to the Right to Financial Privacy Act, termination of the Consolidated Audit Trail (CAT), and prohibitions on a central bank digital currency. Additionally, the act seeks to increase congressional review of agency rulemaking and modify reporting requirements for third-party network transactions.
Expected Effects
If enacted, the Saving Privacy Act would significantly curtail government access to financial records and increase congressional oversight of federal regulations. It would also impact the financial industry by altering reporting requirements and preventing the establishment of a central bank digital currency.
Potential Benefits
- Enhanced Financial Privacy: Stricter warrant requirements and limitations on government access to financial records protect individual privacy.
- Reduced Regulatory Burden: Repealing certain reporting requirements and increasing congressional review could reduce the burden on businesses.
- Prevention of Central Bank Digital Currency: Prohibiting a central bank digital currency may alleviate concerns about government control over personal finances.
- Termination of Consolidated Audit Trail: Addresses privacy concerns related to the collection of personally identifiable information in financial markets.
- Increased Congressional Oversight: Strengthens the legislative branch's role in overseeing and approving agency regulations.
Most Benefited Areas:
Potential Disadvantages
- Reduced Law Enforcement Capabilities: Limiting access to financial records could hinder investigations into financial crimes and terrorism.
- Increased Regulatory Uncertainty: Enhanced congressional review may slow down or block necessary regulatory updates.
- Potential for Financial Instability: Restrictions on a central bank digital currency could limit the government's ability to respond to financial crises.
- Compliance Costs: Financial institutions may incur costs associated with adapting to new regulations and reporting requirements.
- Hindrance to Market Monitoring: Terminating the Consolidated Audit Trail could reduce the ability to monitor and regulate financial markets effectively.
Most Disadvantaged Areas:
Constitutional Alignment
The Saving Privacy Act touches on several constitutional principles. The Fourth Amendment, protecting against unreasonable searches and seizures, is central to the act's provisions on financial privacy. Article I, Section 1, which vests legislative powers in Congress, is relevant to the provisions increasing congressional review of agency rulemaking. The act's provisions could be seen as an effort to reassert congressional authority over the executive branch and protect individual liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).