FinCEN and Federal Reserve withdraw crypto Travel Rule proposal

Overview

Updated 53 minutes ago

A plan to make banks and money transmitters collect identity data on almost every cross-border transfer above $250 is dead. On November 9, 2026, the Financial Crimes Enforcement Network and the Federal Reserve Board withdrew the proposal they first published in October 2020.

The withdrawal leaves the existing $3,000 threshold in place. It also sets aside, for now, an attempt to say explicitly that the Travel Rule covers convertible virtual currency. The agencies said crypto markets and related laws have changed enough that any new rules should get another round of public comment.

Why it matters

The $3,000 cross-border reporting line stays put, and any lower threshold or explicit crypto coverage now needs a fresh public comment round.

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Key Indicators

$3,000

Existing cross-border recordkeeping threshold

The amount at which banks and nonbank financial institutions must collect and retain information on transfers that begin or end outside the United States.

$250

Proposed threshold in the withdrawn rule

The 2020 proposal would have lowered the recordkeeping and Travel Rule thresholds from $3,000 to $250.

~3,000

Public comments received

The agencies said a significant majority were substantially similar form letters.

6 years

Time between proposal and withdrawal

The proposal was published on October 27, 2020, and withdrawn as of November 9, 2026.

Voices

Curated perspectives — historical figures and your fellow readers.

Organizations Involved

Financial Crimes Enforcement Network (FinCEN)

Federal bureau within the US Treasury

Joint issuer of the withdrawn proposal

The Treasury bureau that writes and enforces Bank Secrecy Act rules for banks, money services businesses, and other financial institutions.

Board of Governors of the Federal Reserve System

Central bank

Joint issuer of the withdrawn proposal

The central bank's governing board, which co-issues the Recordkeeping Rule with FinCEN.

Timeline

1995 November 2026

5 events Latest: Yesterday

Tap a bar to jump to that date

November 2026
Agencies withdraw the proposal
Latest Rule

FinCEN and the Federal Reserve pull the 2020 notice, leaving the $3,000 threshold unchanged.
Yesterday
July 2025
GENIUS Act becomes law
Law

The statute creates a federal regulatory framework for payment stablecoins.
July 18th, 2025
January 2025
Executive Order 14178 issued
Policy

The order sets out a federal approach to digital financial technology.
January 31st, 2025
October 2020
Agencies propose a $250 threshold and crypto coverage
Proposal

FinCEN and the Federal Reserve publish a joint notice of proposed rulemaking at 85 FR 68005.
October 27th, 2020
1995
The $3,000 threshold takes effect
Rule

The cross-border recordkeeping threshold is set at $3,000, where it has remained since.
1995

Scenarios

Agencies propose a new cross-border threshold rule

Possible Resolves by End of 2027

Discussed by: FinCEN and the Federal Reserve, in the withdrawal notice

The agencies said they will seek additional public input before considering a future proposal. A new notice of proposed rulemaking could revisit the $250 threshold, keep $3,000, or pick another number. Any change would start a fresh comment period.

A new proposal explicitly covers convertible virtual currency

Possible Resolves by End of 2027

Discussed by: FinCEN and the Federal Reserve, in the withdrawal notice

The 2020 proposal would have revised the definitions of 'payment order' and 'transmittal order' to cover convertible virtual currency and digital assets with legal tender status. The agencies said any future crypto amendments should account for newer developments, including the GENIUS Act. A new proposal could take a different approach or leave crypto out.

The $3,000 threshold and current crypto treatment stay unchanged

Likely Resolves by End of 2027

Discussed by: The withdrawal notice, which says the agencies will take no further action on the 2020 proposal

Withdrawing the proposal removes the pending changes. The existing $3,000 threshold and current definitions remain in force unless the agencies start a new rulemaking and finish it. The notice sets no timeline for that.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1970

Bank Secrecy Act (1970)

Congress passed the Bank Secrecy Act to require financial institutions to keep records and report transactions useful to law enforcement. The statute is the legal basis for both the Recordkeeping Rule and the Travel Rule.

Then

Banks began keeping records and filing reports on large or suspicious transactions.

Now

The act became the foundation for U.S. anti-money-laundering rules, including the cross-border transfer thresholds at issue here.

Why this matters now

The 2020 proposal and its withdrawal both operate under this statute, which sets the boundaries for what FinCEN and the Federal Reserve can require.

1995

The $3,000 threshold (1995)

The cross-border recordkeeping threshold was set at $3,000. Commenters on the 2020 proposal noted that inflation had eroded its value since then and argued for a higher threshold rather than a lower one.

Then

Institutions collected and retained information on cross-border transfers of $3,000 or more.

Now

The figure stayed fixed for more than three decades, becoming the baseline the 2020 proposal tried to change.

Why this matters now

The withdrawal keeps this 1995 figure in place, so the practical reporting line for cross-border transfers is unchanged.

July 2025

GENIUS Act (2025)

A federal statute established a regulatory framework for payment stablecoins. FinCEN and the Federal Reserve cited it, along with a July 2025 White House digital-assets report, as reasons the crypto industry looks different from 2020.

Then

Stablecoin issuers gained a federal framework to work within.

Now

The agencies said any future Travel Rule changes for crypto should be considered alongside these newer legal structures.

Why this matters now

The act is one of the developments the agencies gave for withdrawing the 2020 proposal rather than finalizing it.