The U.S. Treasury Department has formally walked back a long-dormant proposal that would have expanded crypto transaction reporting requirements. On Friday, the Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board of Governors rescinded the proposed “Travel Rule” changes first published in October 2020.
The withdrawn plan would have lowered the threshold for collecting and passing customer information on cross-border transfers from $3,000 to $250, and would have defined “money” to explicitly include convertible virtual currency such as bitcoin. Under the current framework, the $3,000 U.S. Travel Rule threshold remains unchanged, and FinCEN’s 2019 guidance already treats qualifying crypto transfers as subject to the rule.
Why the proposal stalled: The agencies received nearly 3,000 comments, most opposing the lower threshold. Critics argued it would impose heavy compliance costs on smaller institutions, disrupt remittances, push customers toward less regulated channels, and expand “warrantless financial surveillance.” Coin Center and the Crypto Council for Innovation welcomed the withdrawal, noting it follows earlier withdrawals of proposed rules on self-hosted wallets and crypto mixing.
The agencies said more than five years had passed, the convertible virtual currency industry had changed, and additional public input would be helpful. They cited the GENIUS Act, the federal stablecoin law enacted July 18, 2025, as part of the new legal landscape. The withdrawal is scheduled for Federal Register publication on November 9.
Practical impact: For exchanges, the change is largely symbolic. The $250 threshold never took effect, so reporting duties tied to $3,000 and above remain in place. Smaller transfers can still draw scrutiny through risk-based anti-money-laundering programs, sanctions screening, and foreign rules such as the European Union’s no-minimum crypto travel rule.
