FinCEN and the Fed drop the 2020 plan to cut the travel rule threshold to $250
The 2020 proposal would have lowered the cross-border threshold from $3,000 to $250 and written crypto into the definition of "money." FinCEN pulled it on November 6, 2026.
Key points
- FinCEN said on November 6, 2026, that it is withdrawing, jointly with the Federal Reserve Board, a proposal to amend the Recordkeeping and Travel Rule for convertible virtual currencies.
- The October 2020 proposal would have cut the threshold from $3,000 to $250 for funds transfers that begin or end outside the United States.
- It would also have defined "money" to include convertible virtual currency, such as bitcoin, and digital assets with legal tender status.
What happened
The US Treasury's Financial Crimes Enforcement Network (FinCEN) announced on November 6, 2026 that it is withdrawing a proposed rule that "would have amended the Recordkeeping and Travel Rule regarding convertible virtual currencies." FinCEN says the proposal is being withdrawn jointly with the Federal Reserve Board of Governors.
The withdrawal notice is listed by FinCEN as an NPRM withdrawal and has been filed for public inspection at the Federal Register as document 2026-22809. FinCEN's release does not give a reason for the withdrawal.
What the 2020 plan would have changed
The Fed and FinCEN proposed the rule in October 2020. The recordkeeping and travel rules make banks and other financial institutions collect, keep and pass along information about the sender and recipient of a funds transfer.
- Lower threshold: from $3,000 to $250 for transfers that begin or end outside the United States. Domestic transfers would have stayed at $3,000.
- Crypto as "money": the rules would have covered convertible virtual currency, such as cryptocurrency, and digital assets with legal tender status, for both domestic and cross-border transfers.
For crypto exchanges and other money transmitters, the lower threshold would have meant sending customer information with far smaller cross-border transfers. For what exchanges already send today, see our travel rule explainer.
Part of a wider cleanup
This is FinCEN's second crypto withdrawal in about a month. On October 6, 2026, the Federal Register published FinCEN's withdrawal of its proposed rule on certain transactions involving convertible virtual currency, the unhosted wallet proposal, and of its special measure on crypto mixing.
LC Insight analysis
This section is our reading of the facts above, not a statement of fact.
- We think this mostly removes a long-stalled threat rather than changing today's rules: the $250 plan never became final, so the proposal simply leaves the books.
- The likely result is less uncertainty for US exchanges about a much lower cross-border reporting line, though existing travel rule duties still apply.
What's next
- Publication of document 2026-22809 in the Federal Register
- Whether FinCEN or the Fed explain the withdrawal or propose a new threshold
- Further withdrawals of pending crypto proposals
Disclaimer. This article is based on public information and the sources listed below as of the update time shown. It is for information only and is not investment, legal or tax advice. Figures may change as companies and authorities publish new data.
Sources
- FinCEN, FinCEN Announces Withdrawal of Proposed Rule Related to Recordkeeping and Travel Rule Obligations (November 6, 2026)
- FinCEN, Withdrawal of Proposed Rule Related to Recordkeeping and Travel Rule Obligations, Including Those Involving Convertible Virtual Currencies and Certain Digital Assets (November 6, 2026)
- Federal Reserve Board and FinCEN, Threshold for the Requirement to Collect, Retain, and Transmit Information on Funds Transfers and Transmittals of Funds, proposed rule (October 2020)
- Federal Register, Requirements for Certain Transactions Involving Convertible Virtual Currency or Digital Assets; Withdrawal (October 6, 2026)
