Withdrawal: Requirements for Certain Transactions Involving CVC or Digital Assets (91 FR 63514)
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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.
63514 Federal Register / Vol. 91, No. 192 / Tuesday, October 6, 2026 / Proposed Rules
and its implementing regulations, institutions to keep records of customers DEPARTMENT OF THE TREASURY
including the authority under section associated with covered transactions to
311 to make such a finding and to include the customer’s full identity, Financial Crimes Enforcement Network
impose special measures, has been date of birth, address, email address, or
delegated to FinCEN.6 unique identifying numbers. 31 CFR Parts 1010, 1020, and 1022
II. Finding and Notice of Proposed As stated in the July 2025 report by RIN 1506–AB47
Rulemaking the President’s Working Group on
Requirements for Certain Transactions
On October 23, 2023, FinCEN Digital Asset Markets established by
Involving Convertible Virtual Currency
published a proposed rule that, if Executive Order 14178 (E.O. 14178),
or Digital Assets; Withdrawal
finalized, would impose recordkeeping Strengthening American Leadership in
and reporting obligations on covered Digital Financial Technology, ‘‘the AGENCY: Financial Crimes Enforcement
financial institutions to report certain Trump Administration supports the Network (FinCEN), Treasury.
information when they know, suspect, ability of lawful users of digital assets to ACTION: Proposed rule; withdrawal.
or have reason to suspect a CVC privately transact on a public
transaction involves the use of CVC SUMMARY: FinCEN is withdrawing a
blockchain.’’ 10 The report also
mixing within or involving a notice of proposed rulemaking (NPRM)
acknowledged that although illicit that proposed requiring banks and
jurisdiction outside of the United actors ‘‘use mixers to obfuscate and
States.7 Under the proposed rule, money service businesses (MSBs) to
launder funds . . . lawful users of submit reports, keep records, and verify
FinCEN defined the term ‘‘CVC Mixing’’ digital assets may leverage mixers to
as activity that entailed the facilitation the identity of customers in relation to
enable financial privacy when transactions involving convertible
of CVC transactions in a manner that transacting through public
obfuscates the source, destination, or virtual currency (CVC) or digital assets
blockchains.’’ 11 The report with legal tender status (LTDA) held in
amount involved in one or more
recommended that Treasury should unhosted wallets or in wallets hosted in
transactions regardless of the type of
consider next steps regarding its a jurisdiction identified by FinCEN.
protocol or service used, such as: (1)
pooling or aggregating CVC from proposed rulemaking concerning CVC FinCEN will not take any further action
multiple persons, wallets, addresses, or mixing.12 on this NPRM.
accounts; (2) using programmatic or FinCEN is withdrawing its finding DATES: FinCEN is withdrawing the
algorithmic code to coordinate, manage, that international CVC Mixing is a class proposed rule published at 85 FR 83840
or manipulate the structure of a of transactions of primary laundering (December 23, 2020), as of October 6,
transaction; (3) splitting CVC for concern, and the proposed rule, 2026.
transmittal and transmitting the CVC published on October 23, 2023, seeking FOR FURTHER INFORMATION CONTACT: The
through a series of independent to impose special measure one regarding FinCEN Regulatory Support Section by
transactions; (4) creating and using international CVC Mixing. While submitting an inquiry at
single-use wallets, addresses, or FinCEN maintains that illicit actors www.fincen.gov/contact.
accounts, and sending CVC through continue to use mixers and other tools SUPPLEMENTARY INFORMATION: On
such wallets, addresses, or accounts and methods to hinder law enforcement December 23, 2020, FinCEN published
through a series of independent investigations, this withdrawal is an NPRM that proposed adopting
transactions; (5) exchanging between informed by the concerns from recordkeeping, verification, and
types of CVC or other digital assets; or commentors that the expansive reporting requirements for certain
(6) facilitating user-initiated delays in deposits, withdrawals, exchanges, or
definition of CVC mixing in the
transactional activity.8 Additionally, other payments or transfers of CVC or
proposed rule could have a chilling
FinCEN proposed a definition for LTDA by, through, or to a bank or MSB
services called ‘‘CVC Mixers’’ as ‘‘any effect on legitimate activity and place a
large reporting burden on covered that involve an unhosted or otherwise
person, group, service, code, tool, or covered wallet.1 Under the proposal, the
function that facilitates CVC mixing.’’ 9 financial institutions. However, FinCEN
term ‘‘unhosted wallet’’ described
The proposed rule would have required will continue to monitor activity
‘‘when a financial institution is not
covered financial institutions to file a involving CVC mixers for indicia of
required to conduct transactions from
report with FinCEN containing certain money laundering, terrorist financing, the wallet.’’ 2 FinCEN proposed defining
information related to CVC Mixing or other illicit finance activity, and may otherwise covered wallets as those
transactions, such as the amount of CVC take appropriate steps in the future to wallets that are held at a financial
transferred, CVC type, CVC mixer used, mitigate any such activity. institution that is not subject to the
CVC wallet address associated with Bank Secrecy Act and is located in a
Jimmy L. Kirby,
customers, relevant transaction hashes, foreign jurisdiction identified by
date of transactions, IP addresses, and a Deputy Director, Financial Crimes
Enforcement Network. FinCEN.3 The NPRM proposed
description of activity through a requiring banks and MSBs to file a
narrative. The proposed rule would [FR Doc. 2026–20429 Filed 10–5–26; 8:45 am]
report with FinCEN containing certain
have also required covered financial BILLING CODE 4810–02–P
information related to a customer’s CVC
or LTDA transaction and counterparty,
and includes other authorities reflected in notes and to verify the identity of their
lotter on DSK8BHNXB4PROD with PROPOSALS1
thereto. Regulations implementing the BSA appear
at 31 CFR Chapter X.
10 See White House, Strengthening American customer, if a counterparty to the
6 See Treasury Order 180–01 (Jan. 14, 2020). Leadership in Digital Financial Technology, p. 100 transaction is using an unhosted or
7 FinCEN, Proposal of Special Measure Regarding (July 2025), https://www.whitehouse.gov/wp-
Convertible Virtual Currency Mixing, as a Class of content/uploads/2025/07/Digital-Assets-Report- 1 FinCEN, Requirements for Certain Transactions
Transactions of Primary Money Laundering EO14178.pdf; see also Executive Order 14178, 90 Involving Convertible Virtual Currency or Digital
Concern, 88 FR 72701 (Oct. 23, 2023). FR 8647 (Jan. 31, 2025). Assets, 85 FR 83840 (Dec. 23, 2020).
8 Id. 11 Id. at p. 107. 2 Id. at 83843.
9 Id. 12 Id. 3 Id.
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Federal Register / Vol. 91, No. 192 / Tuesday, October 6, 2026 / Proposed Rules 63515
otherwise covered wallet and the DATES: Comments and related material based on a number of these statutes and
transaction is greater than $10,000, or must be received by the Coast Guard on Executive orders.
multiple transactions that aggregate to or before October 21, 2026.
A. Impact on Small Entities
greater than $10,000 in 24 hours. The ADDRESSES: To submit comments and
NPRM also proposed requiring banks view available documents, go to https:// The Regulatory Flexibility Act of
and MSBs to keep records of a www.regulations.gov and search for 1980, 5 U.S.C. 601–612, as amended,
customer’s CVC or LTDA transaction USCG–2026–1057. requires Federal agencies to consider
and counterparty, including verifying FOR FURTHER INFORMATION CONTACT: If the potential impact of regulations on
the identity of their customer, if a you have questions about this proposed small entities during rulemaking. The
counterparty is using an unhosted or rule, contact MST2 Elliot Cortes, Sector term ‘‘small entities’’ comprises small
otherwise covered wallet and the Miami Waterways Management businesses, not-for-profit organizations
transaction is greater than $3,000. Division, U.S. Coast Guard; telephone that are independently owned and
As stated in the report issued by the 786–295–9051, or email operated and are not dominant in their
President’s Working Group on Digital [email protected]. fields, and governmental jurisdictions
Asset Markets established by Executive with populations of less than 50,000.
SUPPLEMENTARY INFORMATION:
Order 14178, ‘‘Strengthening American Section 605 of the RFA allows an
Leadership in Digital Financial I. Table of Abbreviations agency to certify a rule, in lieu of
Technology,’’ FinCEN is withdrawing CFR Code of Federal Regulations preparing an analysis, if the rulemaking
the NPRM as part of the Trump COTP Captain of the Port is not expected to have a significant
Administration’s ongoing efforts to DHS Department of Homeland Security economic impact on a substantial
ensure digital asset regulations are fit- FR Federal Register number of small entities. The Coast
for-purpose.4 FinCEN will take no NPRM Notice of proposed rulemaking Guard certifies under 5 U.S.C. 605(b)
further action on this NPRM. § Section that this proposed rule would not have
U.S.C. United States Code
Jimmy L. Kirby, a significant economic impact on a
Deputy Director, Financial Crimes II. Background and Authority substantial number of small entities for
Enforcement Network. On May 21, 2026, Red Bull North the following reasons.
[FR Doc. 2026–20430 Filed 10–5–26; 8:45 am] America notified the Coast Guard that Vessel traffic will be able to safely
BILLING CODE 4810–02–P they will be hosting a homemade flying transit around this regulated area. This
machine contest. Thirty teams will regulation will only impact a small area
build crafts that cannot use stored for a few hours. The enforcement period
DEPARTMENT OF HOMELAND energy for flight. They will launch off a is during a time when vessel traffic is
SECURITY 22 feet deck built above the water to see higher than normal. In addition, the
how far they can fly on the intercoastal Coast Guard will issue a Broadcast
Coast Guard waters of Biscayne Bay, Miami, FL on Notice to Marines via VHF FM marine
October 31st from 10 a.m. to 5 p.m. channel 16, which will allow small
33 CFR Part 165 Hazards from the flying machines entities to adjust their transit plans.
[Docket Number USCG–2026–1057] breaking apart mid-flight or debris If you think that your business,
drifting unpredictably threaten persons, organization, or governmental
RIN 1625–AA00 vessels, and the marine environment. jurisdiction qualifies as a small entity
The Captain of the Port Sector Miami and that this proposed rule would have
Safety Zone; Red Bull Flugtag,
(COTP) has determined that potential a significant economic impact on it,
Intercoastal Waterway, Biscayne Bay,
hazards associated with event are a please submit a comment (see
Miami, FL
safety concern for anyone within 200 ADDRESSES) explaining why you think it
AGENCY: Coast Guard, Department of feet. Therefore, the COTP is proposing qualifies and how and to what degree
Homeland Security. this rule under the authority in 46 this proposed rule would economically
ACTION: Notice of proposed rulemaking. U.S.C. 70034, which is needed to affect it.
protect spectators, vessels, and the
SUMMARY: The Coast Guard is proposing Under section 213(a) of the Small
marine environment in the navigable
to establish a temporary safety zone for Business Regulatory Enforcement
waters within the safety zone.
certain navigable waters on the Fairness Act of 1996 (Pub. L. 104–121),
Intercoastal Waterway portion of III. Discussion of the Rule if this proposed rule will affect your
Biscayne Bay in Miami, FL. The safety This proposed rule would establish a small business, organization, or
zone is needed to protect spectators, safety zone from 10 a.m. until 5 p.m. on governmental jurisdiction and you have
vessels, and the marine environment October 31, 2026. The safety zone questions, contact the person listed in
from potential hazards associated with would cover all navigable waters within the FOR FURTHER INFORMATION CONTACT
event proceedings. This proposed 200 feet of the event stage. No vessel or section. Small businesses may send
rulemaking would prohibit persons and person would be permitted to enter the comments to the Small Business and
vessels from being in the safety zone safety zone without obtaining Agriculture Regulatory Enforcement
unless specifically authorized by the permission from the COTP or their Ombudsman and the Regional Small
Captain of the Port, Sector Miami. We designated representative. The Business Regulatory Fairness Boards by
calling 1–888–REG–FAIR (1–888–734–
lotter on DSK8BHNXB4PROD with PROPOSALS1
invite your comments on this proposed regulatory text we are proposing appears
rulemaking. at the end of this document. 3247).
IV. Regulatory Analyses B. Collection of Information
4 See White House, Strengthening American
Leadership in Digital Financial Technology, p. 100 We developed this proposed rule after This proposed rule will not call for a
(July 2025), https://www.whitehouse.gov/wp-
content/uploads/2025/07/Digital-Assets-Report-
considering numerous statutes and new collection of information under the
EO14178.pdf; see also Exec. Order 14178, 90 FR Executive orders related to rulemaking. Paperwork Reduction Act of 1995 (44
8647 (Jan. 31, 2025). Below we summarize our analyses U.S.C. 3501–3520).
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