Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Proposed Rules 3897 

Persons wishing the FAA to 

acknowledge receipt of their comments 

on this action must submit with those 

comments a self-addressed stamped 

postcard on which the following 

statement is made: ‘‘Comments to FAA 

Docket No. FAA–2020–1187; Airspace 

Docket No. 20–ANE–9.’’ The postcard 

will be date/time stamped and returned 

to the commenter. 

All communications received before 

the specified closing date for comments 

will be considered before taking action 

on the proposed rule. The proposal 

contained in this document may be 

changed in light of the comments 

received. All comments submitted will 

be available for examination in the 

public docket both before and after the 

comment closing date. A report 

summarizing each substantive public 

contact with FAA personnel concerned 

with this rulemaking will be filed in the 

docket. 

Availability of NPRMs 

An electronic copy of this document 

may be downloaded through the 

internet at https://www.regulations.gov. 

Recently published rulemaking 

documents can also be accessed through 

the FAA’s web page at https://

www.faa.gov/air_traffic/publications/ 

airspace_amendments/. 

You may review the public docket 

containing the proposal, any comments 

received and any final disposition in 

person in the Dockets Office (see the 

ADDRESSES section for address and 

phone number) between 9:00 a.m. and 

5:00 p.m., Monday through Friday, 

except federal holidays. An informal 

docket may also be examined between 

8:00 a.m. and 4:30 p.m., Monday 

through Friday, except federal holidays 

at the office of the Eastern Service 

Center, Federal Aviation 

Administration, Room 350, 1701 

Columbia Avenue, College Park, GA 

30337. 

Availability and Summary of 

Documents for Incorporation by 

Reference 

This document proposes to amend 

FAA Order 7400.11E, Airspace 

Designations and Reporting Points, 

dated July 21, 2020, and effective 

September 15, 2020. FAA Order 

7400.11E is publicly available as listed 

in the ADDRESSES section of this 

document. FAA Order 7400.11E lists 

Class A, B, C, D, and E airspace areas, 

air traffic service routes, and reporting 

points. 

The Proposal 

The FAA proposes an amendment to 

Title 14 Code of Federal Regulations (14 

CFR) part 71 to establish Class E 

airspace extending upward from 700 

feet above the surface at Tobey Hospital 

Heliport, Wareham, MA, providing the 

controlled airspace required to support 

the new RNAV (GPS) standard 

instrument approach procedures for IFR 

operations at Tobey Hospital Heliport. 

Class E airspace designations are 

published in Paragraph 6005, of FAA 

Order 7400.11E, dated July 21, 2020, 

and effective September 15, 2020, which 

is incorporated by reference in 14 CFR 

71.1. The Class E airspace designations 

listed in this document will be 

published subsequently in the Order. 

FAA Order 7400.11, Airspace 

Designations and Reporting Points, is 

published yearly and effective on 

September 15. 

Regulatory Notices and Analyses 

The FAA has determined that this 

proposed regulation only involves an 

established body of technical 

regulations for which frequent and 

routine amendments are necessary to 

keep them operationally current. It, 

therefore: (1) Is not a ‘‘significant 

regulatory action’’ under Executive 

Order 12866; (2) is not a ‘‘significant 

rule’’ under DOT Regulatory Policies 

and Procedures (44 FR 11034; February 

26, 1979); and (3) does not warrant 

preparation of a Regulatory Evaluation 

as the anticipated impact is so minimal. 

Since this is a routine matter that will 

only affect air traffic procedures and air 

navigation, it is certified that this 

proposed rule, when promulgated, will 

not have a significant economic impact 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

Environmental Review 

This proposal will be subject to an 

environmental analysis in accordance 

with FAA Order 1050.1F, 

‘‘Environmental Impacts: Policies and 

Procedures’’, prior to any FAA final 

regulatory action. 

Lists of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend 14 CFR part 71 as 

follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g); 40103, 

40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 

1959–1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of Federal Aviation 

Administration Order 7400.11E, 

Airspace Designations and Reporting 

Points, dated July 21, 2020, and 

effective September 15, 2020, is 

amended as follows: 

Paragraph 6005 Class E Airspace Areas 

Extending Upward From 700 Feet or More 

Above the Surface of the Earth. 

* * * * * 

ANE MA E5 Wareham, MA [New] 

Tobey Hospital Heliport, MA 

(Lat. 41°58′49.18.14′′ N, long. 70°42′52.10′′ 

W) 

That airspace extending upward from 700 

feet above the surface within a 6-mile radius 

of Tobey Hospital Heliport. 

Issued in College Park, Georgia, on January 

7, 2021. 

Andreese C. Davis, 

Manager, Airspace & Procedures Team South, 

Eastern Service Center, Air Traffic 

Organization. 

[FR Doc. 2021–00444 Filed 1–14–21; 8:45 am] 

BILLING CODE 4910–13–P 

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 

AGENCY: Financial Crimes Enforcement 

Network (‘‘FinCEN’’), Treasury. 

ACTION: Notice of proposed rulemaking; 

reopening of comment period. 

SUMMARY: On December 23, 2020, 

FinCEN published a notice of proposed 

rulemaking proposing requirements for 

banks and money services businesses 

(‘‘MSBs’’) related to certain transactions 

involving convertible virtual currency 

(‘‘CVC’’) or digital assets with legal 

tender status (‘‘legal tender digital 

assets’’ or ‘‘LTDA’’). As set forth below, 

FinCEN is identifying additional 

statutory authority for the proposed rule 

under the Anti-Money Laundering Act 

of 2020, providing additional 

information regarding the reporting 

form, and reopening the comment 

period for the proposal. Specifically, 

FinCEN is providing an additional 15 

days for comments on the proposed 

reporting requirements regarding 

3898 Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Proposed Rules 

1Requirements for Certain Transactions Involving 

Convertible Virtual Currency or Digital Assets, 85 

FR 83840 (Dec. 23, 2020). 

2Members of the public have continued to be able 

to, and have in fact continued to, submit comments 

since January 7, 2021. FinCEN will continue to 

review comments submitted after the filing of the 

original notice of proposed rulemaking, including 

comments received between January 7, 2021 and 

January 15, 2021. 

3 31 U.S.C. 5312(a)(3), as amended by section 

6102(d) of the AML Act of 2020, which added 

paragraph (D). 

4Nor is this regulatory determination intended to 

have any impact on the definition of ‘‘currency’’ in 

31 CFR 1010.100(m). Furthermore, nothing in the 

proposal is intended to constitute a determination 

that any CVC or LTDA that is within the regulatory 

definition of ‘‘monetary instruments’’ prescribed 

pursuant to 31 U.S.C. 5312(a)(3) is currency for the 

purposes of the federal securities laws, 15 U.S.C. 

78c(47), or the federal derivatives laws, 7 U.S.C. 1– 

26, and the regulations promulgated thereunder. 

Finally, this determination is intended to have no 

impact on the taxability of CVC or LTDA. 

5 31 U.S.C. 5318(a)(2), as amended by section 

6101(b) of the AML Act of 2020. 

6The user guide for the existing CTR form is 

available at: https://bsaefiling.fincen.treas.gov/docs/ 

XMLUserGuide_FinCENCTR.pdf. 

information on CVC or LTDA 

transactions greater than $10,000, or 

aggregating to greater than $10,000, that 

involve unhosted wallets or wallets 

hosted in a jurisdiction identified by 

FinCEN. FinCEN is providing an 

additional 45 days for comments on the 

proposed requirements that banks and 

MSBs report certain information 

regarding counterparties to transactions 

by their hosted wallet customers, and on 

the proposed recordkeeping 

requirements. 

DATES: The comment period for the 

proposed rule published on December 

23, 2020 (85 FR 83840) is reopened for 

15 days for comments on the proposed 

reporting requirements and for 45 days 

for comments on the proposed 

requirement to report counterparty 

information and the proposed 

recordkeeping requirements. Written 

comments are now therefore due with 

respect to the proposed reporting 

requirements (except with respect to 

reporting of counterparty information) 

on February 1, 2021, and with respect 

to all other aspects of the proposed rule 

on March 1, 2021. 

ADDRESSES: Comments may be 

submitted by any of the following 

methods: 

• Federal E-rulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Refer to Docket Number FINCEN–2020– 

0020 and the specific RIN number 

1506–AB47 to which the comment 

applies. 

• Mail: Policy Division, Financial 

Crimes Enforcement Network, P.O. Box 

39, Vienna, VA 22183. Refer to Docket 

Number FINCEN–2020–0020 and the 

specific RIN number. 

FOR FURTHER INFORMATION CONTACT: The 

FinCEN Regulatory Support Section at 

1–800–767–2825 or electronically at 

frc@fincen.gov. 

SUPPLEMENTARY INFORMATION: On 

December 18, 2020, FinCEN filed with 

the Federal Register a notice of 

proposed rulemaking (the ‘‘December 

Notice’’). The December Notice was 

published in the Federal Register on 

December 23, 2020.1 In the December 

Notice, FinCEN proposed to address the 

threat of illicit finance with respect to 

certain transactions involving CVC or 

LTDA by (i) establishing new reporting 

requirements for certain CVC or LTDA 

transactions analogous to existing 

currency transaction reports, and (ii) 

establishing new recordkeeping 

requirements for certain CVC or LTDA 

transactions that is similar to the 

recordkeeping and travel rule 

regulations pertaining to funds transfers 

and transmittals of funds. The original 

comment period formally closed on 

January 7, 2021, although FinCEN took 

steps to ensure comments could still be 

received after that date.2

On January 1, 2021, the Anti-Money 

Laundering Act of 2020 (Division F of 

Pub. L. 116–283) (‘‘AML Act of 2020’’) 

became law. The AML Act of 2020 

amended 31 U.S.C. 5312(a)(3), the 

definition of ‘‘monetary instruments’’ in 

the Bank Secrecy Act (‘‘BSA’’), on 

which Treasury proposed to rely to 

determine that CVC and LTDA are 

monetary instruments. As amended by 

the AML Act of 2020, the BSA now 

defines the term monetary instruments 

as United States coins and currency; as 

the Secretary may prescribe by 

regulation, coins and currency of a 

foreign country, travelers’ checks, bearer 

negotiable instruments, bearer 

investment securities, bearer securities, 

stock on which title is passed on 

delivery, and similar material; as the 

Secretary of the Treasury shall provide 

by regulation for purposes of sections 

5316 and 5331, checks, drafts, notes, 

money orders, and other similar 

instruments which are drawn on or by 

a foreign financial institution and are 

not in bearer form; and, as the Secretary 

shall provide by regulation, value that 

substitutes for any monetary instrument 

described in the other categories.3

In the December Notice, FinCEN 

proposed prescribing by regulation that 

CVC and LTDA are monetary 

instruments because they constitute 

‘‘similar material’’ to instruments 

described in 31 U.S.C. 5312(a)(3)(B) 

(‘‘coins and currency of a foreign 

country, travelers’ checks, bearer 

negotiable instruments, bearer 

investment securities, bearer securities, 

[and] stock on which title is passed on 

delivery. . . .’’). As the December 

Notice explained, CVC and LTDA are 

‘‘similar material’’ to ‘‘coins and 

currency of a foreign country, travelers’ 

checks, bearer negotiable instruments, 

bearer investment securities, bearer 

securities, [and] stock on which title is 

passed on delivery. . . .’’ FinCEN now 

intends to prescribe by regulation that 

CVC and LTDA are ‘‘monetary 

instruments’’ pursuant to paragraph (D) 

of 31 U.S.C. 5312(a)(3), as amended. 

Specifically, pursuant to 31 U.S.C. 

5312(a)(3)(D), CVC and LTDA are both 

value that substitute for currency and 

are therefore ‘‘monetary instruments’’ 

under the BSA. 

As FinCEN specified in the December 

Notice, the determination at 31 CFR 

1010.316(a) is not intended to affect the 

regulatory definition of ‘‘monetary 

instruments’’ at 31 CFR 1010.100(dd), or 

the use of that regulatory definition 

elsewhere in FinCEN’s regulations, 

including in relation to the currency 

transaction reporting requirements at 31 

CFR 1010.311 and the transportation of 

currency or monetary instruments 

reporting requirements at 31 CFR 

1010.340.4

The AML Act of 2020 also amended 

31 U.S.C. 5318(a)(2), granting the 

Secretary additional authority to 

implement reporting requirements. 

Specifically, the Secretary may require a 

class of domestic financial institutions 

to ‘‘maintain appropriate procedures, 

including the collection and reporting of 

certain information as the Secretary of 

the Treasury may prescribe by 

regulation, to ensure compliance with 

[subchapter 53 of title 31 of the U.S. 

Code] and regulations prescribed under 

[such] subchapter or to guard against 

money laundering, the financing of 

terrorism, or other forms of illicit 

finance.’’ Thus, in addition to the 

authority cited in the December Notice, 

the proposed rule relies on authority 

under 31 U.S.C. 5318(a)(2) to extend 

transaction reporting requirements to 

CVC/LTDA transactions.5

Reports required by the proposed rule 

would be submitted on a Value 

Transaction Report form similar to the 

existing FinCEN Currency Transaction 

Report (‘‘CTR’’) Form 112. The form 

would be submitted through the existing 

BSA E-filling system and would be able 

to be batch reported.6 Filers would be 

able submit information commonly 

associated with CVC and LTDA 

transactions, such as: 

Federal Register / Vol. 86, No. 10 / Friday, January 15, 2021 / Proposed Rules 3899 

(a) The CVC or LTDA type used in the 

transaction; 

(b) The transaction amount; 

(c) The assessed transaction value (in 

U.S. dollars); 

(d) The date and time of the 

transaction; 

(e) The transaction hash; 

(f) CVC or LTDA addresses involved 

in the transaction, and if they are hosted 

or unhosted; 

(g) The name and physical address of 

each counterparty to the transaction of 

the financial institution’s customer; and 

(h) Other information readily 

available to the bank or MSB, which 

aids in identifying the specific reported 

transaction(s), the means by which it 

was conducted, and the parties 

involved. 

A final rule implementing these 

proposed reporting requirements would 

be effective 30 days after its publication, 

except that the requirement to report 

counterparty information (if adopted) 

would not take effect for 60 days given 

the additional complexity it may 

present. 

FinCEN also continues to invite 

comment on the portion of the 

December Notice related to proposed 

independent recordkeeping obligations 

for transactions greater than $3,000. Any 

final rule implementing the 

recordkeeping requirements would be 

effective 60 days after its publication. 

Comments on the December Notice: 

FinCEN reviewed and considered 7,506 

comments submitted in response to the 

December Notice prior to January 8, 

2021. Commenters included financial 

institutions and companies that provide 

services related to CVC or LTDA, 

academics, trade organizations, 

cryptocurrency development groups, 

non-profit organizations, customers and 

employees of companies that provide 

services related to CVC or LTDA, and 

cryptocurrency owners and other 

individuals (both domestic and foreign), 

as well as anonymous sources. 

Commenters addressed a range of 

considerations, including implications 

for technological development and other 

forms of innovation, the economics of 

the digital asset industry, U.S. economic 

competitiveness, compliance matters, 

data security and privacy, utility to law 

enforcement, and procedural aspects of 

the December Notice (including the 

length of the comment period). 

Determination to Reopen the Public 

Comment Period: FinCEN appreciates 

the substantial response from 

commenters during the original 

comment period, and FinCEN welcomes 

further comment in the reopened 

comment periods. With respect to the 

additional 15 days for comments on the 

proposed reporting requirements, 

FinCEN notes that these proposed 

requirements are essentially equivalent 

to the existing CTR reporting 

requirements that apply to transactions 

in currency. The proposed rule is a vital 

loophole-closing measure to prevent 

illicit transactions using CVC and 

LTDA, including the financing of 

terrorism, in light of the fact that such 

transactions would otherwise be subject 

to familiar and long-established 

reporting requirements if they were in 

cash. The proposal is also consistent 

with Congress’s recent expansion of the 

definition of ‘‘monetary instrument’’ in 

the BSA, which reflects the expectation 

that FinCEN would bring CVC and 

LTDA within monetary instrument 

reporting requirements. FinCEN notes 

that a large number of commenters 

agreed it is fully appropriate for FinCEN 

to finalize a rule providing similar 

regulatory treatment to similar activity. 

FinCEN welcomes comments during 

this reopened comment period on 

FinCEN’s application of new statutory 

authority pursuant to the BSA 

amendments made by the AML Act of 

2020. In addition, several commenters 

noted the need for additional 

information on the nature of the reports 

required by the proposal in order to 

provide an assessment of potential costs 

and benefits of the proposed rule. As 

indicated in the supplementary 

information, FinCEN intends to use a 

form similar to the existing CTR form 

and requests further comment in light of 

this additional information. 

With respect to the additional 45 days 

for comments on the proposed 

recordkeeping requirements and the 

proposed requirement to report 

counterparty information, FinCEN is 

providing a longer period in light of the 

somewhat greater complexity of those 

aspects of the proposed rule and various 

issues identified in comments received 

during the original comment period. 

Kenneth A. Blanco, 

Director, Financial Crimes Enforcement 

Network. 

[FR Doc. 2021–01016 Filed 1–14–21; 8:45 am] 

BILLING CODE 4810–02–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 96 

46 CFR Parts 71, 115, and 176 

[Docket No. USCG–2020–0123] 

RIN 1625–AC65 

Safety Management Systems for 

Domestic Passenger Vessels 

AGENCY: Coast Guard, DHS. 

ACTION: Advance notice of proposed 

rulemaking. 

SUMMARY: The Coast Guard is evaluating 

the potential use of Safety Management 

Systems (SMSs) to improve safety and 

reduce marine casualties on board U.S.- 

flagged passenger vessels. In this 

document, the Coast Guard is seeking 

public input and responses to specific 

questions on the feasibility, 

applicability, and nature of SMSs for 

potential use on U.S.-flagged passenger 

vessels. The Coast Guard may use this 

information to develop a proposed rule 

regarding SMSs; if so, notification of 

that proposed rule would appear in the 

Federal Register under this docket 

number. 

DATES: Comments and related material 

must be received by the Coast Guard on 

or before April 15, 2021. 

ADDRESSES: You may submit comments 

identified by docket number USCG– 

2020–0123 using the Federal 

eRulemaking Portal at https://

www.regulations.gov. See the ‘‘Public 

Participation and Request for 

Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section for 

further instructions on submitting 

comments. 

FOR FURTHER INFORMATION CONTACT: For 

information about this document, call or 

email Lieutenant Kimberly Gates, Vessel 

and Facility Operating Standards 

Division (CG–OES–2), U.S. Coast Guard, 

2703 Martin Luther King Jr. Avenue SE, 

Washington, DC 20593; telephone 202– 

372–1455, email kimberly.m.gates@

uscg.mil. 

SUPPLEMENTARY INFORMATION: 

Table of Contents for Preamble 

I. Public Participation and Request for 

Comments 

II. Abbreviations 

III. Background 

IV. Advance Notice of Proposed Rulemaking 

Discussion 

V. Information Requested