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Regulation & Policy · 1 min read

FinCEN and Federal Reserve Withdraw Proposed Crypto Travel Rule Changes

Regulators drop plans to lower the international transaction reporting threshold and revise recordkeeping rules for convertible virtual currencies.

Editorial oversight: Julian Mercer, Chief Editor
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$BTC $74,533 −1.8%

At a glance Announced

What happened
FinCEN and the Federal Reserve Board jointly withdrew a proposed rule amending the Recordkeeping and Travel Rule for digital assets.
Why it matters
The decision cancels a planned reduction in the threshold for international fund transfers and halts proposed amendments for convertible virtual currencies.
Who is affected
US financial institutions, money services businesses, and digital asset firms processing cross-border transactions.
What's next
No next step announced.
Primary source
fincen.gov: FinCEN.gov

Key points

  • FinCEN and the Federal Reserve Board jointly withdrew a proposed rule revising Recordkeeping and Travel Rule requirements 1.
  • The abandoned proposal would have amended obligations for convertible virtual currencies and certain digital assets 1.
  • The measure would have lowered the dollar threshold triggering reporting on fund transfers that start or end outside the United States 1.

The Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board of Governors have jointly withdrawn a notice of proposed rulemaking targeting the Recordkeeping and Travel Rule for digital assets 1. The scrapped proposal would have introduced specific reporting amendments for convertible virtual currencies and reduced the threshold required for cross-border funds transfers 1.

The move halts a regulatory initiative designed to mandate enhanced transaction data collection for payments originating or terminating outside the United States 1. Under the envisioned framework, financial institutions and digital asset service providers would have faced stricter compliance obligations and lower dollar limits when processing international transactions 1. Details on existing frameworks are covered in The Crypto Travel Rule, Explained.

Shifts in Federal Rulemaking

The joint withdrawal marks another notable recalibration of anti-money laundering compliance proposals targeting digital assets. It mirrors previous actions by the Treasury Department bureau, including when FinCEN withdraws proposed rules on unhosted wallets and crypto mixing. Dropping the proposal relieves institutions from preparing for lowered international funds transmission thresholds under the Bank Secrecy Act framework 1.

FinCEN has not published an updated timeline or indicated whether a revised draft addressing cross-border recordkeeping for convertible virtual currencies will be submitted in a future rulemaking cycle 1. At the time of writing, Bitcoin ($BTC) traded at $74,052, down 2.3% over the prior 24 hours.

Questions this story raises

What did the withdrawn FinCEN and Federal Reserve proposal cover?
The proposed rule sought to alter Recordkeeping and Travel Rule requirements for convertible virtual currencies and lower the dollar threshold for transfers originating or terminating outside the United States.
Does this mean the Travel Rule no longer applies to crypto?
No. Existing Bank Secrecy Act and Travel Rule regulations remain in place; only the specific proposed amendments and threshold reductions were withdrawn.

Sources

  1. [1] FinCEN.gov — fincen.gov, November 6, 2026

Written by Basis Desk's newsroom system from the primary sources above and machine-verified against them before publication. Market figures marked "at the time of writing" come from live exchange data. Report an error: corrections@basisdesk.news · corrections policy.

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