<h2 id="header-0">Key Facts</h2>
<ul>
 <li>FinCEN and the Federal Reserve Board are withdrawing a 2020 proposal that would have cut the threshold for recordkeeping and travel rule requirements on cross-border funds transfers from $3,000 to $250.</li>
 <li>The proposal would also have specified that the rules apply to domestic and cross-border transactions involving convertible virtual currency and digital assets with legal tender status.</li>
 <li>The agencies cited the more than five years since the proposal and significant developments in the crypto industry, such as the GENIUS Act, and said no final rule will be issued without a new chance for public comment.</li>
</ul>
The Financial Crimes Enforcement Network and the Federal Reserve Board are withdrawing a 2020 proposal that would have lowered the threshold for collecting, retaining and transmitting information on cross-border funds transfers to $250 and applied the rules explicitly to crypto transactions.
The withdrawal notice went on public inspection on Friday and is scheduled for publication in the Federal Register on Nov. 9. The agencies said they "will not take further action" on the proposal.
"The proposal is being withdrawn to provide certainty to the public that no final rule will be issued without an additional opportunity for public comment," the agencies said in the <a target="_blank" rel="noopener noreferrer nofollow" href="https://public-inspection.federalregister.gov/2026-22809.pdf">notice</a>.
<img src="https://academy-public.coinmarketcap.com/optimized-uploads/0f10fae34f3444029385ba041ad8b49b.png">
FinCEN and the Fed are withdrawing a 2020 plan to cut the Travel Rule threshold to $250 and apply it explicitly to crypto. Source: <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.fincen.gov/">FinCEN</a>
<h2 id="header-1">What the 2020 Proposal Would Have Done</h2>
Under the <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/banking-secrecy-act-bsa">Bank Secrecy Act</a>, the "Recordkeeping Rule" and "Travel Rule" require banks and nonbank financial institutions to collect, retain and pass on information for funds transfers of $3,000 or more.
The October 2020 proposal would have cut that threshold to $250 for transfers that begin or end outside the United States. It would also have clarified that the rules apply to domestic and cross-border transactions involving convertible virtual currency, FinCEN's term for crypto, and digital assets with legal tender status.
<h2 id="header-2">Why the Agencies Pulled It</h2>
<a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/financial-crime-enforcement-network-fincen">FinCEN</a> and the Fed received nearly 3,000 comments, a significant majority of them form letters, and commenters generally opposed the lower threshold, the notice says. Crypto service providers and their trade groups generally opposed applying the rules to crypto, with opponents citing technological limits and the lack of an international messaging standard, while some banks and money services businesses supported it.
The agencies gave two main reasons for withdrawing. More than five years have passed, and more public feedback would be useful before any similar changes, they said. They also said "there have been significant recent developments" in the crypto industry, pointing to the GENIUS Act stablecoin law enacted in July 2025.
Any future changes to the rules related to crypto "should be considered in light of these recent developments to ensure that such amendments are fit for purpose," the notice says. The withdrawal leaves the existing $3,000 threshold in place.
FinCEN <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/fincen-withdraws-crypto-mixing-unhosted-wallet-rule-proposals">withdrew its crypto mixing and unhosted wallet rule proposals</a> in October, while the Office of the Comptroller of the Currency has <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/occ-final-genius-act-rule-stablecoin-issuers">finalized its GENIUS Act rule for stablecoin issuers</a> ahead of a Jan. 18 start.
Read More:&nbsp;<a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/hong-kong-passes-crypto-tax-reporting-carf-bill">Hong Kong Passes Crypto Tax Reporting Bill for 2027</a>

FinCEN, Fed Withdraw Plan to Cut Travel Rule Threshold to $250

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