FinCEN and Federal Reserve withdraw 2020 crypto Travel Rule proposal
FinCEN and the Federal Reserve have formally withdrawn an October 2020 proposal that would have slashed the cross-border reporting threshold to $250 and explicitly added cryptocurrency to Travel Rule definitions.
The Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board of Governors have scrapped an October 2020 joint proposal that would have lowered the international recordkeeping threshold from $3,000 to $250 and defined "money" in the Recordkeeping and Travel Rules to include convertible virtual currencies and legal-tender digital assets. FinCEN announced the withdrawal on Nov. 6, and the formal joint notice appeared in the Federal Register on Nov. 9, confirming the agencies will take no further action on the plan.[2]
The regulators explained that the proposal had become dated after more than five years and noted that digital asset markets and legal frameworks have evolved significantly since 2020. The notice specifically cited the passage of the GENIUS Act, the federal stablecoin law enacted in July 2025, emphasizing that any future changes to the rules will require a fresh round of public comment. The agencies received nearly 3,000 comments on the original notice, with public feedback generally pushing back against the $250 limit.[2][3]
The withdrawal leaves existing U.S. obligations intact, maintaining the current $3,000 threshold for the Travel Rule and Recordkeeping Rule without altering ongoing compliance duties. The proposed lower threshold never took effect in the U.S., contrasting with the European Union, where exchanges can still pause small incoming transfers, such as $500 customer transactions, until required sender and recipient information is delivered.[1][2][4]
Key facts
- FinCEN and the Federal Reserve formally withdrew their October 2020 notice of proposed rulemaking to reduce the international reporting threshold to $250.
- The abandoned proposal would have expanded Travel Rule and Recordkeeping Rule definitions of "money" to cover convertible virtual currencies and legal-tender digital assets.
- FinCEN announced the decision on Nov. 6, and the joint withdrawal notice was published in the Federal Register on Nov. 9.
- Regulators cited the proposal's age and changes in crypto markets, including the July 2025 enactment of the GENIUS Act stablecoin law, committing to seek fresh public input before issuing any final rule.
- Existing U.S. Recordkeeping Rule and Travel Rule obligations remain unchanged, preserving the $3,000 reporting threshold.
- The withdrawal notice was signed by FinCEN Deputy Director Jimmy L. Kirby and Federal Reserve Board of Governors secretary Benjamin McDonough.
- In the European Union, crypto exchanges may still hold small transactions, such as a $500 transfer, until required sender and recipient details are supplied.
Sources · 4 sources
- CR
CryptoSlateArticle ·
US drops a proposed crypto rule. Europe can still hold up your $500 transfer The proposed U.S. threshold never took effect, while a $500 customer transfer can still require information before an EU exchange releases it. Read the full story on CryptoSlate Understand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Open source - UN
UnchainedArticle ·
FinCEN, Fed Withdraw Proposal That Would Have Written Crypto Into Travel Rule Definitions FinCEN (the Financial Crimes Enforcement Network) and the Federal Reserve have scrapped a 2020 notice of proposed rulemaking (NPRM) that would have required banks and other financial institutions to collect and pass along customer details on much smaller international transfers, and that would have named crypto in the rules outright. FinCEN announced the withdrawal on Nov. 6, and the joint notice was published in the Federal Register on Nov. 9. The two agencies said they “will not take further action on this NPRM.” The current $3,000 threshold stays in place for the Recordkeeping Rule, which requires institutions to collect and keep sender and recipient details on transfers, and the Travel Rule, which requires them to send that information along with the transfer to the institution that handles it next. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . Why the Agencies Pulled It The notice gave two reasons. The first was age: the plan is more than five years old, and the agencies want fresh feedback before trying anything like it again. The withdrawal is meant “to provide certainty to the public that no final rule will be issued without an additional opportunity for public comment,” they wrote. Second, they pointed to changes since 2020 in convertible virtual currency (CVC) , the agencies’ term for crypto that has an equivalent value as currency or stands in for it without being legal tender, writing that “CVC markets have continued to mature, and new legal frameworks are emerging.” The notice cited the GENIUS Act , the federal stablecoin law enacted in July 2025 , and said any future crypto-related changes to the two rules should take such developments into account. FinCEN Deputy Director Jimmy L. Kirby and Benjamin McDonough , secretary of the Fed’s Board of Governors, signed the notice; FinCEN’s release did not include comment from any official. What the 2020 Plan Would Have Done The October 2020 proposal would have dropped the $3,000 threshold to $250 for transfers that start or end outside the United States. It also would have spelled out that “money” in both rules covers CVC and any digital asset that is legal tender, for transfers inside the U.S. as well as across borders. FinCEN’s May 2019 guidance had already said the two rules may cover crypto transfers handled by nonbank firms, according to the proposal. Reaction to the crypto language was mixed, according to the notice. Crypto service providers and their trade groups generally opposed it; support came from some banks, money services businesses and their trade associations. The agencies received nearly 3,000 comments , most of them form letters, and commenters generally opposed the lower threshold. Some argued that inflation since 1995 justified raising the line, not cutting it, while others warned that a $250 threshold would put a heavy burden on financial institutions, especially smaller ones, disrupt consumers’ ability to send remittances overseas, or expose firms to more liability for the personal data they keep. What Changes and What Doesn’t For banks and crypto firms, the withdrawal leaves day-to-day obligations where they were, since the $3,000 line still applies and the notice does not loosen any existing Travel Rule duty. What it removes is a pending proposal that sat open for six years, so any future push to lower the cross-border threshold or write crypto into the definitions would have to start with a new round of public comment. Related Listen: Why Banks Failed to Kill Stablecoin Rewards in the Clarity Act The post FinCEN, Fed Withdraw Proposal That Would Have Written Crypto Into Travel Rule Definitions appeared first on Unchained .
Open source - LS
Laura Shin@laurashinPost on X ·
FinCEN and the Federal Reserve want new public input before they revisit crypto under the Travel Rule, saying the market has matured since 2020 and laws like the GENIUS Act now govern stablecoins. https://t.co/dQAyNvlkSW
Open source - CR
CryptoSlate@CryptoSlatePost on X ·
.@FinCENnews and @federalreserve withdrew a plan to cut the $3,000 threshold for cross-border transfer-data rules to $250. EU exchanges can still hold small incoming crypto transfers until required sender and recipient details arrive. via @akibablade https://t.co/e6eCCRclXS
Open source