DBS white paper on the Money Transmission Modernization Act (SB 86 committee document)

Bitcoin Research — Law, Regulation, Markets & Origins (2026)

States

Ak

2026-04-08

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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.

Department of Commerce, Community, and
                                                                Economic Development
                                                                         DIVISION OF BANKING AND SECURITIES
                                                                                             Anchorage Office
                                                                               550 West Seventh Avenue, Suite 1850
                                                                                          Anchorage, Alaska 99501
                                                                                                  Main: 907.269-8140
                                                                                            Toll free: 1.888.925.2521
                                                                                                    Fax: 907.269-8146

               Alaska Uniform Money Transmission Modernization Act
                        SB86 (34th Legislature) White Paper

OVERVIEW: This legislation amends and modernizes the Alaska Uniform Money Services Act
(“Act”) (“AS 06.55”) utilizing a model law drafted by state regulators and industry representatives.
The Act provides the legal framework for money transmission functions, including currency
exchange, transfer or wiring of money, and loading and reloading of payment instruments including
stored-value cards. Most money transmission now involves either mobile app transmission such as
PayPal, CashApp, and Venmo or virtual currency. Those innovations did not exist when current law
took effect. This legislation is a generational update to modernize licensing, recordkeeping, and
enforcement provisions to support these business activities and protect Alaska consumers.

Reduces regulatory burden by streamlining initial licensing and license renewal using the
Nationwide Multistate Licensing System and Registry (“NMLS”) for submitting license applications,
filing documents, reporting, and payment of fees. Over 90% of states use the NMLS for money
transmitters. This bill will allow Alaska to leverage NMLS to make licensure more streamlined for
the regulated and more efficient for the regulator.

Protects Alaska consumers by conducting criminal background checks through the NMLS on
individuals who control a money transmission business. (Note: background checks are currently
conducted manually by the Division of Banking and Securities staff using a third-party software
application and consume almost 130 staff hours per year.)

Broadens the definition of money transmission in statute to include virtual currency transactions
and other methods of moving or transferring monetary value to better protect Alaskans. As of
June 5, 2025, 31 states have adopted the model law in whole or in part.

Enhances Consumer Protection
•    Requires licensees to comply with federal laws, including suspicious activity reporting.
•    Increases the record retention schedule to five years for greater transparency and compliance
     with the Bank Secrecy Act.
•    Ensures the division can coordinate with other states in all areas of regulation, licensing, and
     supervision to reduce regulatory burden on the industry and more effectively utilize regulator
     resources.
•    Defines virtual currency money transmission activities and allows regulation of those
     activities to protect Alaska consumers.
•    Updates enforcement provisions by allowing a broader spectrum of orders to be issued.

(cont. next page)
               Alaska Money Transmission Volume and Transaction Growth
   *Total includes money transmission, payment instruments, stored value, and cryptocurrency
                                             as of 4-7-2026

                            Crypto-       % of Crypto          # of Total*     # of Cryptocurrency
            Total*         currency        Volume             Transactions          Transactions
                                            (rounded)
2025   $ 7,953,522,594   $2,290,734,963             29%           31,433,112               5,805,266

2024   $ 6,330,471,991   $1,496,163,960             24%           28,205,303               3,109,566

2023   $ 4,511,283,968   $ 615,382,162              14%           25,549,251               1,908,142

2022   $ 5,835,715,744   $ 623,988,882              11%           31,087,859               1,956,704

2021   $ 7,140,117,146   $1,945,325,597             27%           28,613,973               3,283,291

2020   $ 2,823,728,053 $    91,717,781                  3%        18,456,585                 259,635

2019   $ 1,681,573,000 $    33,603,484                  2%        10,548,048                  84,719

       Money          CY2025 CY2024 CY2023 CY2022 CY2021 CY2020 CY2019
 Transmitter/Currency
  Exchange Licenses    189    173    180    168    153    136    113

  For questions or additional information, please contact:

  DCCED Division of Banking and Securities
  Tracy Reno, Director
  Office (907) 269-8112
  Cell (907) 317-3558
  Email: [email protected]

  Updated 4/8/2026