Modernizing the banking system has been a priority of the Trump Administration. In March 2025, President Trump signed an executive order mandating all federal disbursements and receipts to be electronic, accelerating the shift towards a fully digital payment system. On August 7, President Trump signed the “Fair Banking” executive order to ensure “federal regulators do not promote policies and practices that allow financial institutions to deny or restrict services based on political beliefs, religious beliefs, or lawful business activities, ensuring fair access to banking for all Americans.” Now, the Senate takes a turn by proposing a bill updating longstanding financial reporting regulations.
Senators Tim Scott (R-SC) and John Kennedy (R-LA) introduced a bill to raise reporting thresholds for currency transaction reports and suspicious activity reports under the Bank Secrecy Act (BSA). Currently, the reporting thresholds for both currency transactions and suspicious activity have remained unchanged since 1970. This means that, back in 1970, banks had to report transactions at $10,000; 55 years later, they still report the same $10,000 threshold. The U.S. Bureau of Labor Statistics CPI calculator shows that $10,000 in 1970 has the purchasing power of $85,700 today. Transactions exceeding $2,000 to $5,000, depending on the circumstances, must be reported for review of “suspicious activity.”
The 1970s saw the “Great Inflation,” which peaked at 14.8%. Despite experiencing these high inflation rates, the reporting thresholds were never updated, even though there are significantly more transactions over $10,000 today than in 1970. More transactions over $10,000 mean more filings. The Senators proposing the bill argue that the original reporting requirements were made to “identify legitimate illicit financial activity” rather than “overwhelm the financial institutions with excessive paperwork.”
This also creates more paperwork for the Treasury Department, whose Financial Crimes Enforcement Network (FinCEN) oversees these reports.
Senator Cynthia Lummis (R-WY) believes, “When banks and credit unions are bogged down by red tape and outdated reporting rules, it’s small businesses and everyday Americans who pay the price.”
Senator Kennedy said, “Washington’s financial reporting requirements may have made sense in the 70’s, but in today’s economy, they simply weigh down our financial institutions.”
If passed, the bill allows the Treasury Department to adjust reporting thresholds for inflation every five years.
While answering Trump’s call for modernization, the bill does not address one of the President’s core issues with the banking system: issuing explanations to customers whose accounts are closed.
In 2025, the Trump organization sued Capital One, claiming the bank closed hundreds of accounts affiliated with the Trump organization without providing an explanation.
Eric Trump recently commented on this issue in his new book, Under Siege.
“The most devastating surprise came from Capital One, after being a client for nearly twenty years. ‘Eric, I just received notice via overnight mail terminating all our bank accounts, effective March 21, 2021,’ the opening of the three-sentence letter read. ‘Your account has been closed,’ and ended with this line: ‘If you have any questions, please get in touch.’”
“I had questions,” wrote Eric Trump.
.png)
.png)
