---
title: "FinCEN and Federal Reserve Withdraw Proposed Crypto Travel Rule Changes"
description: "Regulators drop plans to lower the international transaction reporting threshold and revise recordkeeping rules for convertible virtual currencies."
url: https://basisdesk.news/news/fincen-federal-reserve-withdraw-crypto-travel-rule-proposal
published: 2026-11-09T10:06:32.889Z
modified: 2026-11-09T10:06:32.889Z
section: Regulation & Policy
author: Basis Desk Newsroom (AI-generated, source-verified)
sentiment: neutral
tickers: [BTC]
tags: [fincen, federal-reserve, travel-rule, aml, compliance, recordkeeping]
license: Quote with attribution to Basis Desk (basisdesk.news). Not financial advice.
---

# 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.

## At a glance

- **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.
- **Status:** announced
- **Primary source:** [FinCEN.gov](https://www.fincen.gov/news/news-releases/fincen-announces-withdrawal-proposed-rule-related-recordkeeping-and-travel-rule) — 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].

## Editorial remark

- **Context:** US regulators originally proposed lowering reporting limits on international transfers and clarifying obligations for convertible virtual currency transactions to close perceived anti-money laundering gaps.
- **Impact:** Crypto asset service providers, domestic banks, and international payment processors avoid the increased compliance overhead and lower thresholds originally planned for foreign transfers.
- **Watch:** Whether FinCEN or the Federal Reserve initiates a fresh rulemaking cycle or issues new supervisory guidance on cross-border crypto transfers.

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](https://basisdesk.news/news/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](https://basisdesk.news/news/fincen-withdraws-unhosted-wallet-crypto-mixing-rules). 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.

## FAQ

**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. [FinCEN.gov](https://www.fincen.gov/news/news-releases/fincen-announces-withdrawal-proposed-rule-related-recordkeeping-and-travel-rule) — fincen.gov, 2026-11-06

---
Basis Desk Newsroom · AI-generated, source-verified · https://basisdesk.news/about/how-we-use-ai