The US Treasury's FinCEN and the Federal Reserve have withdrawn a 2020 proposal to cut the cross-border transfer threshold from $3,000 to $250. The existing $3,000 threshold stays in place, including for crypto businesses covered by FinCEN's money transmission rules.
FinCEN and the Federal Reserve have withdrawn their proposal to lower the reporting and recordkeeping threshold for cross-border transfers from $3,000 to $250. According to a joint notice from the agencies, the withdrawal takes effect on Nov. 9.
The existing requirements remain unchanged. The $3,000 threshold will continue to apply to qualifying transfers handled by banks and other covered institutions, including cryptocurrency businesses subject to FinCEN's money transmission rules.
What the 2020 proposal would have changed
The plan would have required institutions to collect and retain identifying information for international transfers worth $250 or more. Domestic transfers would have kept the higher threshold.
The agencies had also proposed bringing convertible virtual currencies and digital assets with legal tender characteristics into the regulatory language. For exchanges and custodians, the change would have meant handling customer information for a much larger number of transactions.
The proposal drew nearly 3,000 public comments. Some commenters raised concerns about financial privacy, and others argued the agencies had not supplied enough evidence to justify a lower threshold.
Why the agencies pulled back
The agencies cited the time since the original proposal and changes in the crypto industry and its regulatory environment. The notice also points to the GENIUS Act's payment-stablecoin framework and the July 2025 White House digital-assets report, The Defiant reports.
The agencies left open the possibility of future crypto-related amendments. However, the notice says no final rule will be issued without an additional opportunity for public comment, the same outlet reports.
Industry reaction and what stays the same
Gavin Zavatone, policy lead at the DeFi Education Fund, welcomed the decision. He argued the proposed requirements would have placed unnecessary burdens on cryptocurrency users.
The decision does not remove the Travel Rule from crypto transactions. Exchanges must still comply with existing anti money laundering and customer identification requirements, crypto.news reports.
Sources: crypto.news, The Defiant
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