THE BANK SECRECY ACT IS BROKEN. TECHNOLOGY CAN FIX IT

Summary from the TLDR Crypto newsletter

The Bank Secrecy Act (BSA) is outdated as its decades-old data mandates are inefficient, insecure, and incompatible with modern technology. Today's compliance stack requires firms to store and transmit vast amounts of personal data, much of it unread and unused, creating unnecessary risks for users and institutions alike. This legacy model should be replaced with zero-knowledge proofs (ZKPs), allowing users to prove compliance (e.g. age and sanctions) without exposing sensitive info. Congress and Treasury should modernize rules and embrace ZKP-based systems as part of the broader push for crypto regulatory clarity.