Withdrawal: CVC mixing finding and NPRM (91 FR 63513)
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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.
Federal Register / Vol. 91, No. 192 / Tuesday, October 6, 2026 / Proposed Rules 63513
be added. Key elements of the § 410.1 Basin regulations—Water Code FR 72701 (October 23, 2023), as of
procedure are as follows: and Administrative Manual—Part III Water October 6, 2026.
Quality Regulations.
D Online registration to speak at a FOR FURTHER INFORMATION CONTACT: The
public hearing will remain open until 5 * * * * * FinCEN Regulatory Support Section by
p.m. on the day immediately before (c) Work, services, activities and submitting an inquiry at
each hearing date. facilities affecting the conservation, www.fincen.gov/contact.
utilization, control, development or
D Each person who wishes to provide management of water resources within
SUPPLEMENTARY INFORMATION:
oral comment may do so at only one the Delaware River Basin are subject to I. Statutory Provisions
public hearing. regulations contained within the
D Speaking time will be limited to Section 311 of the USA PATRIOT
Delaware River Basin Water Code with Act 1 (section 311), codified at 31 U.S.C.
approximately three minutes per Amendments through [EFFECTIVE
speaker. 5318A, grants the Secretary of the
DATE OF FINAL RULE], and the Treasury (Secretary) the authority to
D Elected government officials and Administrative Manual—Part III Water make a finding that ‘‘reasonable grounds
their staff members will have the Quality Regulations with Amendments exist for concluding’’ that any of the
opportunity to identify themselves through December 7, 2022. Both the following ‘‘is of primary money
when registering to attend a hearing. Delaware River Basin Water Code and laundering concern’’:
D Attendance at the public hearing is the Administrative Manual—Part III
Water Quality Regulations are (i) A jurisdiction outside of the United
not limited and requires no advance States;
registration. incorporated by reference into this
(ii) One or more financial institutions
section with the approval of the Director
D Written and oral comments will operating outside of the United States;
of the Federal Register under 5 U.S.C. (iii) One or more classes of transactions
receive equal consideration.
552(a) and 1 CFR part 51. You may within, or involving, a jurisdiction outside of
The Commission appreciates the obtain or inspect this material at the the United States; or
public’s participation and input on this Delaware River Basin Commission (iv) One or more types of accounts.2
matter. (DRBC), 25 Cosey Road, West Trenton, Upon making such a finding, the
Translation Services for Rulemaking New Jersey 08628–0360, 609–883–9500, Secretary is authorized to require
Materials. The Commission will www.drbc.gov. domestic financial institutions and
consider requests for translation of this Dated: September 29, 2026. domestic financial agencies—
document and the proposed rule text
Naomi Mendelsohn, collectively, ‘‘covered financial
into languages other than English. To
Commission Secretary/Assistant General institutions’’—to take certain ‘‘special
request translation of documents related
Counsel. measures.’’ Specifically, pursuant to
to this rulemaking, please send an email
[FR Doc. 2026–20480 Filed 10–5–26; 8:45 am] section 311, the Secretary may impose
to [email protected]. Please specify
BILLING CODE 6360–01–P one or more of five possible special
both the requested language and the
measures as safeguards to defend the
requested documents.
U.S. financial system from money
More Information. Detailed and up-to- laundering and terrorist financing risks.
date information about the rulemaking, DEPARTMENT OF THE TREASURY Through special measures one through
including proposed rule text, a four, the Secretary may impose
frequently asked questions document, Financial Crimes Enforcement Network
additional recordkeeping, information
public notices, and links for submitting collection, and reporting requirements
written comments and for registering 31 CFR Part 1010
on covered financial institutions.3
online to speak at the scheduled public Through special measure five, the
hearing can be found on the RIN 1506–AB47
Secretary may ‘‘prohibit, or impose
Commission website, www.drbc.gov. conditions upon, the opening or
Proposal of Special Measure
List of Subjects in 18 CFR Part 410 Regarding Convertible Virtual maintaining in the United States of a
Currency Mixing, as a Class of correspondent account or payable-
Incorporation by reference, Water Transactions of Primary Money through account’’ for or on behalf of a
pollution control, Water resources, Laundering Concern; Withdrawal foreign banking institution, if such
Water supply. correspondent account or payable-
AGENCY: Financial Crimes Enforcement through account involves the financial
For the reasons set forth in the
Network (FinCEN). institution operating outside of the
preamble, the Delaware River Basin
Commission proposes to amend title 18, ACTION: Withdrawal of finding and United States found to be of primary
chapter III, subchapter A of the Code of notice of proposed rulemaking. money laundering concern.4
Federal Regulations as follows: The authority of the Secretary to
SUMMARY: FinCEN is withdrawing its administer the Bank Secrecy Act (BSA) 5
PART 410—BASIN REGULATIONS; finding and proposed rulemaking,
WATER CODE AND ADMINISTRATIVE pursuant to section 311 of the USA 1 Uniting and Strengthening America by
MANUAL—PART III WATER QUALITY PATRIOT Act, that international Providing Appropriate Tools Required to Intercept
Convertible Virtual Currency (CVC) and Obstruct Terrorism Act of 2001, Public Law
REGULATIONS 107–56, 115 Stat. 272 (Oct. 26, 2001) (USA
mixing is a class of transactions of
lotter on DSK8BHNXB4PROD with PROPOSALS1
PATRIOT Act).
■ 1. The authority citation for part 410
primary money laundering concern and 2 31 U.S.C. 5318A(a)(1).
continues to read as follows: that a special measure requiring 3 31 U.S.C. 5318A(b)(1)–(4).
enhanced recordkeeping and reporting 4 31 U.S.C. 5318A(b)(5).
Authority: Delaware River Basin Compact, requirements should be imposed 5 The BSA, as amended, is the popular name for
75 Stat. 688. a collection of statutory authorities that FinCEN
regarding this class of transactions.
administers that is codified at 12 U.S.C. 1829b,
■ 2. Amend § 410.1 by revising DATES: FinCEN is withdrawing the 1951–1960 and 31 U.S.C. 5311–5314, 5316–5336,
paragraph (c) to read as follows. proposed rulemaking published at 88 Continued
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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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