A House Financial Services subcommittee held a hearing on modernizing anti-money laundering laws, focusing on the Bank Secrecy Act (BSA) in light of advances in digital assets and AI. Experts highlighted soaring crypto-enabled financial crime: North Korea stole over $2 billion in digital assets in 2025 and pig-butchering scams cost Americans $35 billion last year. AI-driven scams increased 500%, and illicit funds now move rapidly, outpacing traditional reporting frameworks. Witnesses urged shifting the BSA’s focus from sheer reporting volume to actionable intelligence, with some calling for higher reporting thresholds, simplified filings, and explicit approval for banks to use AI. Proposals included formal recognition for specialized crypto intelligence units and safe harbor laws allowing exchanges to freeze suspicious assets. Concerns were expressed about data storage risks and the BSA’s growing role in financial surveillance. Most witnesses supported wider adoption of AI for transaction monitoring, with calls for federal investment in AI-native investigative tools. The hearing followed an executive order from President Trump, which directed regulators to strengthen customer due diligence and expand oversight over account ownership, especially regarding non-citizen customers.