Crypto, Banks, Policy Experts Press Congress to Modernize Bank Secrecy Act

A House subcommittee hearing examined modernizing the Bank Secrecy Act for an era of AI and digital assets, spotlighting faster-moving illicit activity and calls to shift from high-volume reporting to actionable intelligence. TRM Labs testified that North Korea stole >$2B in 2025 and ~$600M in early 2026, and that AI-enabled scams surged ~500%, compressing response windows for exchanges and law enforcement. Witnesses broadly supported expanded, AI-driven monitoring but disagreed on scope—options ranged from repeal to targeted reform. The hearing followed an executive order directing tougher customer due diligence and scrutiny of non-citizen accounts, signaling potential tighter compliance and surveillance for crypto firms, stablecoins, and exchanges — moves likely to raise compliance costs and affect on-chain privacy and flows.