Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets; Withdrawal

Issuing agencies

Abstract

FinCEN is withdrawing a notice of proposed rulemaking (NPRM) that proposed requiring banks and money service businesses (MSBs) to submit reports, keep records, and verify the identity of customers in relation to transactions involving convertible virtual currency (CVC) or digital assets with legal tender status (LTDA) held in unhosted wallets or in wallets hosted in a jurisdiction identified by FinCEN. FinCEN will not take any further action on this NPRM.

Full Text

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<title>Federal Register, Volume 91 Issue 192 (Tuesday, October 6, 2026)</title>
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[Federal Register Volume 91, Number 192 (Tuesday, October 6, 2026)]
[Proposed Rules]
[Pages 63514-63515]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20430]


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DEPARTMENT OF THE TREASURY

Financial Crimes Enforcement Network

31 CFR Parts 1010, 1020, and 1022

RIN 1506-AB47


Requirements for Certain Transactions Involving Convertible 
Virtual Currency or Digital Assets; Withdrawal

AGENCY: Financial Crimes Enforcement Network (FinCEN), Treasury.

ACTION: Proposed rule; withdrawal.

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SUMMARY: FinCEN is withdrawing a notice of proposed rulemaking (NPRM) 
that proposed requiring banks and money service businesses (MSBs) to 
submit reports, keep records, and verify the identity of customers in 
relation to transactions involving convertible virtual currency (CVC) 
or digital assets with legal tender status (LTDA) held in unhosted 
wallets or in wallets hosted in a jurisdiction identified by FinCEN. 
FinCEN will not take any further action on this NPRM.

DATES: FinCEN is withdrawing the proposed rule published at 85 FR 83840 
(December 23, 2020), as of October 6, 2026.

FOR FURTHER INFORMATION CONTACT: The FinCEN Regulatory Support Section 
by submitting an inquiry at <a href="http://www.fincen.gov/contact">www.fincen.gov/contact</a>.

SUPPLEMENTARY INFORMATION: On December 23, 2020, FinCEN published an 
NPRM that proposed adopting recordkeeping, verification, and reporting 
requirements for certain deposits, withdrawals, exchanges, or other 
payments or transfers of CVC or LTDA by, through, or to a bank or MSB 
that involve an unhosted or otherwise covered wallet.\1\ Under the 
proposal, the term ``unhosted wallet'' described ``when a financial 
institution is not required to conduct transactions from the wallet.'' 
\2\ FinCEN proposed defining otherwise covered wallets as those wallets 
that are held at a financial institution that is not subject to the 
Bank Secrecy Act and is located in a foreign jurisdiction identified by 
FinCEN.\3\ The NPRM proposed requiring banks and MSBs to file a report 
with FinCEN containing certain information related to a customer's CVC 
or LTDA transaction and counterparty, and to verify the identity of 
their customer, if a counterparty to the transaction is using an 
unhosted or

[[Page 63515]]

otherwise covered wallet and the transaction is greater than $10,000, 
or multiple transactions that aggregate to greater than $10,000 in 24 
hours. The NPRM also proposed requiring banks and MSBs to keep records 
of a customer's CVC or LTDA transaction and counterparty, including 
verifying the identity of their customer, if a counterparty is using an 
unhosted or otherwise covered wallet and the transaction is greater 
than $3,000.
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    \1\ FinCEN, Requirements for Certain Transactions Involving 
Convertible Virtual Currency or Digital Assets, 85 FR 83840 (Dec. 
23, 2020).
    \2\ Id. at 83843.
    \3\ Id.
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    As stated in the report issued by the President's Working Group on 
Digital Asset Markets established by Executive Order 14178, 
``Strengthening American Leadership in Digital Financial Technology,'' 
FinCEN is withdrawing the NPRM as part of the Trump Administration's 
ongoing efforts to ensure digital asset regulations are fit-for-
purpose.\4\ FinCEN will take no further action on this NPRM.
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    \4\ See White House, Strengthening American Leadership in 
Digital Financial Technology, p. 100 (July 2025), <a href="https://www.whitehouse.gov/wp-content/uploads/2025/07/Digital-Assets-Report-EO14178.pdf">https://www.whitehouse.gov/wp-content/uploads/2025/07/Digital-Assets-Report-EO14178.pdf</a>; see also Exec. Order 14178, 90 FR 8647 (Jan. 31, 2025).

Jimmy L. Kirby,
Deputy Director, Financial Crimes Enforcement Network.
[FR Doc. 2026-20430 Filed 10-5-26; 8:45 am]
BILLING CODE 4810-02-P


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