U.S. regulators withdrew a 2020 proposal that would have lowered the threshold for collecting information on certain transfers from $3,000 to $250, according to The Block’s report published on November 6, 2026, at 20:36:32 UTC.
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board of Governors rescinded the proposal on Friday. The action withdrew proposed amendments to the Recordkeeping Rule and Travel Rule—not the existing rules themselves.
Why the agencies withdrew the proposal
In a filing, FinCEN cited the more than five years that had elapsed since the proposal, changes in the convertible virtual currency industry and the value of obtaining additional public input.
“The Agencies believe that any future, potential amendments to the Recordkeeping Rule and Travel Rule related to CVC should be considered in light of these recent developments to ensure that such amendments are fit for purpose,” FinCEN said.
When proposing the change in 2020, FinCEN argued that bad actors were increasingly using smaller transactions to move illicit funds. Crypto advocacy groups, including Coin Center, countered that reducing the threshold would subject more ordinary transactions to what they called “warrantless financial surveillance.”
Industry groups welcome the decision
Coin Center welcomed the withdrawal in a Friday blog post. It also pointed to Treasury’s withdrawal the previous month of proposals concerning self-hosted, or “unhosted,” wallets and cryptocurrency mixing. The wallet proposal would have imposed reporting and recordkeeping requirements on transactions involving self-hosted wallets.
Coin Center said the withdrawals together closed out several long-pending proposals that would have expanded financial surveillance under the Bank Secrecy Act.
Crypto Council for Innovation CEO Ji Hun Kim called the Travel Rule proposal’s withdrawal the “right call,” saying it had not advanced for several years “for good reason.” He argued that lowering the threshold for cross-border transfers from $3,000 to $250 would have placed an undue burden on institutions.
Original source: The Block.