The purpose of the TRACE Act is to strengthen regulations around firearms to prevent illegal sales and enhance accountability in the firearms industry. This legislation aims to improve tracking of firearms, ensure better compliance with background checks, and enhance the oversight of licensed firearms dealers. One of the key provisions of the TRACE Act is the requirement for all firearms manufactured in the U.S. to have a second, hidden serial number. This serial number must be placed inside the firearm's receiver or be visible only under infrared light.