The SEC’s Division of Trading and Markets and the CFTC’s Division of Market Oversight and Division of Clearing and Risk are coordinating efforts to facilitate the trading of certain spot crypto asset products on registered exchanges. This initiative is part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, and it builds on the recommendations of the President’s Working Group on Digital Asset Markets report on 'Strengthening American Leadership in Digital Financial Technology'.

According to the press release, this request for comment offers the opportunity for interested individuals and organizations to provide feedback on "innovative or novel methods, techniques, or strategies that regulated financial institutions use, or could potentially use, to detect illicit activity involving digital assets.  In particular, Treasury asks commenters about application program interfaces, artificial intelligence, digital identity verification, and use of blockchain technology and monitoring."

FinCEN issued the Notice to financial institutions urging them to be "vigilant in identifying and reporting suspicious activity involving convertible virtual currency (CVC) kiosks. CVC kiosks—also called cryptocurrency (crypto) Automated Teller machines (ATMs)—are ATM-like devices or electronic terminals that allow customers to exchange real (or fiat) currency for virtual currency and vice versa."

The report covers:

• The digital asset ecosystem
• Digital asset market structure
• Banking and digital assets
• Stablecoins and payments
• Countering illicit finance
• Taxation

See also Fact sheet: The President’s Working Group on Digital Asset Markets Releases Recommendations to Strengthen American Leadership in Digital Financial Technology.