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FinCEN and Fed withdraw 2020 proposal to extend travel rule to crypto
Two federal agencies have dropped a 2020 proposal to extend travel rule requirements to crypto, leaving the current $3,000 threshold in place.
Quick take
- FinCEN and the Federal Reserve have withdrawn a 2020 proposal that would have extended travel rule definitions to crypto.
- The withdrawn plan would have cut the cross-border threshold to $250, while the $3,000 threshold continues to apply.
- The agencies will take no further action on the proposal, so existing Travel Rule duties remain unchanged.
Unchained reported that the Financial Crimes Enforcement Network and the Federal Reserve have withdrawn a proposed rule issued in 2020 that would have brought crypto into the definitions used by the travel rule. A joint notice describing the withdrawal appeared in the Federal Register on Nov. 9, after FinCEN made the announcement on Nov. 6. The agencies said they will take no further action on that proposal.
The joint notice was signed by FinCEN Deputy Director Jimmy L. Kirby and Benjamin McDonough of the Federal Reserve. The agencies cited the age of the plan, which is more than five years old, along with maturing crypto markets and new legal frameworks. The notice also referenced the GENIUS Act, a stablecoin law from July 2025. The 2020 plan would have lowered the cross-border threshold to $250, but the current $3,000 threshold remains for recordkeeping and travel rules.
The proposal drew nearly 3,000 comments, mostly form letters, opposing the lower threshold. Crypto firms generally opposed the crypto language in the proposal, while some banks supported it. With the withdrawal, existing Travel Rule duties remain unchanged.
Sources
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