The U.S. Financial Crimes Enforcement Network and the Federal Reserve have withdrawn their earlier proposal to bring crypto into the Travel Rule, citing a market that has changed since 2020. The agencies want fresh public input, and the existing framework stays in place.
FinCEN and the Federal Reserve withdrew a proposal to integrate cryptocurrencies into the Travel Rule definitions, announced on November 6, 2026. The agencies aim to collect new public input on the matter, because the market has evolved significantly since the original proposal in 2020.
The GENIUS Act sets the backdrop
The decision comes amid a regulatory landscape shaped by the GENIUS Act, enacted in 2025 to establish a framework for stablecoins and enforce compliance with the Bank Secrecy Act. Crypto Briefing says the decision to revisit the Travel Rule in light of current market conditions and that law may indicate a shift in regulatory priorities.
Because the existing framework remains unchanged, the focus is now on how to regulate crypto transfers appropriately while accounting for the established stablecoin regime.
Bitcoin odds shift slightly
Crypto Briefing reports that the news appears to have implications for the broader crypto market, particularly Bitcoin, as participants assess potential regulatory easing. In Bitcoin futures markets, it describes a slight but noticeable change in sentiment.
The odds of Bitcoin reaching $200,000 by December 31, 2026, remain low but show a potential for increase, according to the same report. It adds that the regulatory news could be read as reducing some earlier regulatory pressure.
Source: Crypto Briefing
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