# Saving Privacy Act

*Weekly Crypto Policy Brief 10.4.24*

By [Cap Hill Crypto](https://paragraph.com/@caphillcrypto) · 2024-10-04

---

Good morning and happy October. With Congress out of session, a short and sweet edition this week highlighting a new financial privacy bill, an imminent SEC departure, and a few updates from DC and the campaign trail.

Top Points
----------

*   Senators Mike Lee (R-UT) and Rick Scott (R-FL) introduced the Saving Privacy Act - a bill to drastically reduce federal agencies' access to Americans' financial information without first obtaining a warrant.
    
*   SEC Enforcement Director Gurbir Grewal is leaving the agency on October 11.
    

**The Saving Privacy Act**
--------------------------

On September 25th, Senators Mike Lee (R-UT) and Rick Scott (R-FL) introduced the “Saving Privacy Act.”

*   ​[**Text**](https://www.lee.senate.gov/services/files/DEB1999F-849F-4107-96CA-08F72F6F947A).
    
*   ​[**One Pager**](https://www.lee.senate.gov/services/files/83B51EDD-EDCB-4CAA-9AC5-BB14D4B7CC67).
    

**In short, the bill would significantly limit federal agencies’ access to Americans’ personal financial information** by amending the Right to Financial Privacy Act of 1978 and the Bank Secrecy Act.

**For example, the bill would**:

*   **Repeal various reporting provisions under the Bank Secrecy Act**, including [**Suspicious Activity Reports**](https://www.investopedia.com/terms/s/suspicious-activity-report.asp) and [**Currency Transaction Reports**](https://www.fincen.gov/frequently-asked-questions-regarding-fincen-currency-transaction-report-ctr), while keeping certain recordkeeping requirements. See § 101(b)(3) (striking 31 U.S.C. §§ 5313, 5314, 5315, 5316, 5317, 5318A, 5324, 5326, 5331, 5332, and 5336).
    
*   **Amend the Right to Financial Privacy Act** to narrow circumstances under which federal agencies can access U.S. citizens' financial information without a warrant. See §§ 101(a), 201.
    
*   **Repeal the** [**Corporate Transparency Act**](https://www.uschamber.com/co/start/strategy/small-business-corporate-transparency-acthttps://www.americanbar.org/groups/business_law/resources/business-law-today/2021-may/the-corporate-transparency-act/#:~:text=Section%206402%20of%20the%20NDAA,of%20the%20United%20States%20Code.), which requires businesses to report information about their ownership to FinCEN. § 101.
    
*   **Repeal the SEC’s Consolidated Audit Trail database**, which has [**already sparked privacy concerns and a legal challenge**](https://cointelegraph.com/news/sec-database-privacy-lawsuit-crypto-groups) from the DeFi Education Fund and Blockchain Association. § 301.
    
*   **Prohibit federal agencies from creating a database of personally identifiable information of U.S. citizens** in the future without clear Congressional authorization. Id.
    
*   **Impose penalties on federal employees** who illegally seek constitutionally protected financial information. Title VI.
    

**As for CBDCs**, the bill would:

*   Prohibit the Fed, Treasury, or any other agency from minting or issuing a CBDC directly to individuals or indirectly through an intermediary. § 401.
    

**The bill also aims to broadly rein in federal agencies' power by:**

*   **Requiring Congressional review and approval of any regulations determined to be a major rule**, and an opportunity for Congress to disapprove of any non-major rules. § 502.
    
    *   **_Major rules_** would be those likely to result in an annual economic impact of $100 million or more; a major increase in costs/prices for consumers, industries, or governments; significant adverse effects on U.S. businesses; or an increase in mandatory vaccinations.
        

**So What?**

The bill has been referred to the Senate Committee on Homeland Security and Governmental Affairs.

It is unlikely to move this year, but serves as a marker of financial privacy advocates' priorities/wish list heading into next Congress.

**Enforcement Director To Leave SEC**
-------------------------------------

**On Wednesday**, the SEC announced that Gurbir Grewal, the Director of Enforcement, is leaving the SEC on October 11.

​[**Sanjay Wadhwa**](https://www.pli.edu/faculty/sanjay-wadhwa-i351940) will replace Grewal by serving as Acting Director.

​[**In its press release**](https://www.sec.gov/newsroom/press-releases/2024-162) announcing the sudden departure (less than two weeks notice), **the SEC specifically recognized Grewal's “**[**leadership**](https://www.sec.gov/newsroom/press-releases/2024-162)**”** [**on recommending over 100 enforcement**](https://www.sec.gov/newsroom/press-releases/2024-162) **actions in the crypto space**, citing ongoing cases against Binance and Coinbase:

![](https://storage.googleapis.com/papyrus_images/6c386de4960b412de05fc9bb1e110bfb.png)

  

**Chair Gensler's statement:**

[![User Avatar](https://storage.googleapis.com/papyrus_images/ca3de092d50fe228070d96d5f00a4eb9.jpg)](https://twitter.com/SECGov)

[U.S. Securities and Exchange Commission](https://twitter.com/SECGov)

[@SECGov](https://twitter.com/SECGov)

[![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/SECGov/status/1841548406029754524)

Today we announced that Gurbir S. Grewal, Director of the Division of Enforcement, will depart the agency, effective Oct. 11, 2024. [sec.gov/newsroom/press…](https://t.co/4wXy6ka0qM)

![](https://storage.googleapis.com/papyrus_images/2737bfb101aab5d71f55a7fcaf8b6fc5.jpg)

 [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 437](https://twitter.com/SECGov/status/1841548406029754524)[

2:38 PM • Oct 2, 2024

](https://twitter.com/SECGov/status/1841548406029754524)

**Members of Congress react:**

​[**House Republican Whip Tom Emmer (R-MN)**](https://x.com/GOPMajorityWhip/status/1841560880955158916)

![](https://storage.googleapis.com/papyrus_images/a4b0ced4be5588ffb2ee71c1a11af3e2.png)

[**Rep. French Hill (R-AR) - HFSC Digital Asset Subcomm Chair**](https://x.com/RepFrenchHill/status/1841596061837672527)

![](https://storage.googleapis.com/papyrus_images/8687963e7792eee33ed68ce22bc6c39f.png)

**Look Ahead**
--------------

* * *

A message from the Coinbase Institute

**Join us for the DC Privacy Summit!**

_Explore the future of privacy online with leading technologists, privacy advocates, and policy-minded professionals._

**Thursday - October 24, 2024**

USC Capital Campus - Washington, D.C.

![](https://storage.googleapis.com/papyrus_images/4269bc96a6459490a0a1897b5378042a.png)

\- RSVP Required -

[RSVP](https://lu.ma/dcprivacysummit)

​Produced by the journalism team at [**Project Glitch**](http://projectglitch.xyz/) and presented by PGP\* for Crypto, this first-of-its kind privacy summit brings together an elite lineup of technologists, researchers, and policy experts to explore the intersection of decentralized networks, advanced cryptography, and the law.

* * *

*   **Election**: [**Tuesday, November 5**](https://www.vote.org/am-i-registered-to-vote/?gad_source=1&gclid=Cj0KCQjwpP63BhDYARIsAOQkATbssZiL29Pg5f976zjyv3jJuYcrqFoFjnAOpAgDBKOreNfPiI3dLLYaAra9EALw_wcB).
    
*   **Congress returns**: November 12.
    

**Quick Hits**
--------------

**Congress**

**Bring Tigran Home**

*   **Rep. Rich McCormick (R-GA) and Tigran's wife, Yuki, joined the “Designated**” **podcast to discuss efforts to bring Tigran home and the devastating impact his detention is having on his wife and young kids (ages 5 & 10)**.
    
    *   ​[**Tigran Gambaryan has been detained since February**](https://www.forbes.com/sites/digital-assets/2024/09/22/bring-tigran-gambaryan-home-a-crypto-officers-nigerian-nightmare/), reportedly without adequate medical care.
        
    *   **According to Rep. McCormick**:
        
        *   “This is an obvious case of holding somebody hostage to punish a business they have a problem with. He's just being treated absolutely horribly and he is an American citizen, and that should be taken very seriously by our government.”
            
    *   ​[**Podcast**](https://www.youtube.com/watch?v=DvjMcelaGRA).
        
    *   Recap by Coin Desk's Amitoj Singh: “[**Is Daddy on the Airplane? Jailed Binance Exec Tigran Gambaryan Family's Ordeal in New Podcast**](https://www.coindesk.com/policy/2024/10/01/is-daddy-on-the-airplane-jailed-binance-exec-gambaryan-familys-ordeal-in-new-podcast/)”
        

**Strategic Bitcoin Reserve**

*   **Rep. Ro Khanna (D-CA) embraces idea of a strategic bitcoin reserve,** telling Sam Lyman of Forbes:
    
    *   “\[B\]itcoin that has been seized by the U.S. government should be used as a strategic reserve asset given its potential for appreciation.”
        
    *   Full Forbes Article by Lyman here: “[**Bipartisan Support Builds For Strategic Bitcoin Reserve**](https://www.forbes.com/sites/digital-assets/2024/10/02/bipartisan-support-builds-for-strategic-bitcoin-reserve/).”
        

**GOP Majority Whip Tom Emmer**

*   Republican Whip Tom [**Emmer tells Mainnet crowd that Republicans would push to cut SEC funding if they control the House**](https://www.politico.com/newsletters/morning-money/2024/10/01/could-morning-money-manipulate-election-betting-markets-00181805) next Congress.
    
*   ​[**Whip Emmer also tells Decrypt that aspects of FIT 21 could get included in a year-end spending bill**](https://decrypt.co/283919/crypto-bill-fit21-become-law-christmas-tom-emmer).
    

**DePIN Fly In**

*   **Blockchain Association hosted a fly in focused on educating Hill staffers on decentralized physical infrastructure networks** (DePIN).
    
    *   Industry participants included: [**Helium**](https://x.com/helium), [**Filecoin Foundation**](https://x.com/FilFoundation), [**GEODNET**](https://x.com/GEODNET_), [**CESS Network**](https://cess.network/), [**Hivemapper**](https://x.com/Hivemapper), [**Multicoin Capital**](https://x.com/multicoincap), [**Coin Fund**](https://x.com/coinfund_io), and [**Storj**](https://x.com/storj).
        

![](https://storage.googleapis.com/papyrus_images/c6a0bcdf5471c036549b27fcbdc78f3d.png)

**2024 Election**

**Polling**

*   Grayscale, Coinbase, and Consensys partnered with pollsters to survey the potential impact of crypto owners on the 2024 election.
    
*   **Key Takeaways:** Crypto owners may comprise a significant enough voting bloc to impact elections in battleground states, represent a diverse cross-section of the population, and are pretty much evenly spread amongst the Republican and Democratic parties.
    
    *   ​[**Grayscale & The Harris Poll -**](https://www.grayscale.com/globalassets/harris-poll/grayscale-crypto-election-research-report.pdf) “[**Election 2024: The Role of Crypto**](https://www.grayscale.com/globalassets/harris-poll/grayscale-crypto-election-research-report.pdf)”
        
        *   **1 Key Finding:** More than three quarters (77%) of voters agree that “Presidential candidates should have an informed perspective on innovative technology, like AI or crypto.”
            
    *   ​[**Coinbase & Morning Consult:**](https://www.coinbase.com/blog/ten-things-you-should-know-about-the-crypto-voter) “[**10 Things You Should Know About the Crypto Voter**](https://www.coinbase.com/blog/ten-things-you-should-know-about-the-crypto-voter)”
        
        *   **1 Key Finding:** “There are more than sixteen times the number of crypto owners in the seven key battleground states than the vote differential combined in these states in the 2020 Presidential election.”
            
    *   ​[**Consensys & Harris X:**](https://assets.ctfassets.net/gjyjx7gst9lo/79TZcrkmCjtnmHZrkagWTv/395f16055af44f40edc053e0308cb00d/HarrisX-Consensys_Crypto_Voters_Study.pdf) “[**Crypto Voters and the 2024 Election**](https://assets.ctfassets.net/gjyjx7gst9lo/79TZcrkmCjtnmHZrkagWTv/395f16055af44f40edc053e0308cb00d/HarrisX-Consensys_Crypto_Voters_Study.pdf)”
        
        *   **1 Key Finding**: 40% of all voters are more likely to consider voting for the other party’s candidate if the candidate is pro-crypto.
            
        *   **_See also_** Op-Ed by Bill Hughes, Consensys' Senior Counsel and Director of Global Regulatory Matters: “[**Kamala Harris knows crypto voters are up for grabs: New polls confirm**](https://cointelegraph.com/news/harris-improves-electoral-chances-by-backing-crypto).”
            

**Articles**

*   ​[**Stand With Crypto Endorses 20 Republicans and 19 Democrats**](https://decrypt.co/283557/coinbase-linked-group-endorses-senate-candidates), but stays clear of Senate races in Michigan, Arizona, and Ohio (Sander Lutz; Decrypt).
    
*   **​**[**Senate Republican Challengers Make Case For Light-Touch Crypto Regulation at Mainnet**](https://www.axios.com/2024/10/01/light-touch-crypto) (Brady Dale; Axios).
    

**SEC**

*   The SEC will appeal Judge Torres's final judgement in _SEC v. Ripple Labs;_ precise issues to be appealed tbd.
    
    *   ​[**Notice of Appeal**](https://storage.courtlistener.com/recap/gov.uscourts.nysd.551082/gov.uscourts.nysd.551082.978.0.pdf)​[.](https://storage.courtlistener.com/recap/gov.uscourts.nysd.551082/gov.uscourts.nysd.551082.974.0_1.pdf)​
        
    *   ​[**Docket**](https://www.courtlistener.com/docket/19857399/securities-and-exchange-commission-v-ripple-labs-inc/?page=1).
        

**Bitcoin Mining**

*   The U.S. Energy Information Administration published a report examining energy demand by data centers and cryptocurrency miners in Texas.
    
    *   **​**[**Report**](https://www.eia.gov/todayinenergy/detail.php?id=63344)**.**
        

[![User Avatar](https://storage.googleapis.com/papyrus_images/8592ce3f20930aee67e8e2b86501fb06.jpg)](https://twitter.com/DigitalEnergyUS)

[Digital Energy Council](https://twitter.com/DigitalEnergyUS)

[@DigitalEnergyUS](https://twitter.com/DigitalEnergyUS)

[![Twitter Logo](https://paragraph.xyz/editor/twitter/logo.png)](https://twitter.com/DigitalEnergyUS/status/1841971515262206050)

1/Today [@EIAgov](https://twitter.com/EIAgov) released a report focused on Data Centers and [#Crypto](https://twitter.com/hashtag/Crypto) mining driving demand growth in Texas.  
  
Areas of focus:  
Uncertainty of large-load demand  
  
How large flexible load sources could affect power generation  
  
Impact of large-load demand on wholesale power prices

 [![Like Icon](https://paragraph.xyz/editor/twitter/heart.png) 8](https://twitter.com/DigitalEnergyUS/status/1841971515262206050)[

6:40 PM • Oct 3, 2024

](https://twitter.com/DigitalEnergyUS/status/1841971515262206050)

**Combatting Illicit Finance**

*   **Meredith Fitzpatrick**, Director of Cryptocurrency Investigations at the Forensic Risk Alliance, **breaks down asset recovery in the context of custodial and non-custodial cryptocurrency wallets**.
    
    *   “[**Understanding Asset Recovery And Cryptocurrency Wallets**](https://www.forensicrisk.com/news-and-insights/understanding-asset-recovery-and-cryptocurrency-wallets)”
        

**Geofencing**

*   “[**A Practical Guide to Geofencing**](https://variant.fund/articles/practical-guide-to-geofencing/)” by Variant Fund's Jake Chervinsky (Chief Legal Officer) and & Daniel Barabander (Deputy General Counsel.
    

**Trivia**
----------

**Last Week's A:** Nebraska and Maine do not follow a winner-take-all electoral college model. Instead:

*   **Maine** allocates two electoral votes to the statewide winner and one electoral vote to the winner of each congressional district.
    
*   **Nebraska** also allocates two electoral votes to the statewide winner and one electoral vote to the winner of each of its three congressional districts.
    

**This Week's Q:** The first vice-presidential debate was held between which two candidates?

Thanks for reading,

\-GSL

[Share](https://paragraph.xyz/@caphillcrypto/YgPcE1kY2SqYT9NEnb3R)

[Subscribe](https://paragraph.xyz/@caphillcrypto/memberships)

[Collect](https://paragraph.xyz/@caphillcrypto/YgPcE1kY2SqYT9NEnb3R)

---

*Originally published on [Cap Hill Crypto](https://paragraph.com/@caphillcrypto/saving-privacy-act)*
