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Key takeaways
- FinCEN, part of the US Treasury, and the Federal Reserve Board are withdrawing a 2020 proposal that would have cut the threshold for collecting and passing on sender and recipient details on transfers that begin or end outside the US from $3,000 to $250.
- The 2020 plan would also have spelled out that these rules cover crypto ("convertible virtual currency"). The agencies say they will not take further action on it, and the threshold stays at $3,000.
- The withdrawal notice was filed on November 6, 2026, and is set to be published in the Federal Register on November 9. It follows FinCEN's October withdrawal of two other crypto proposals, including the $10,000 unhosted-wallet reporting plan.
- For regular users, nothing new is asked of you. Existing anti-money-laundering rules, including the $3,000 Travel Rule line, stay as they are. The agencies say any future change would go out for public comment first.
A six-year-old plan that would have pulled many more small cross-border transfers, crypto included, under US record-keeping and information-sharing rules is being withdrawn. The Treasury's anti-money-laundering bureau, known as FinCEN, is pulling it along with the Federal Reserve Board, so the threshold stays at $3,000. Here's what the plan was, why it was dropped and what it means if you send crypto.
What happened
On November 6, 2026, FinCEN and the Fed's Board filed a joint withdrawal notice (opens in a new tab), now on public inspection at the Federal Register. It is set to be published there on November 9, and the withdrawal takes effect on the day it is published. In the notice, the two agencies say they "will not take further action" on the proposal. crypto.news (opens in a new tab) reported on the filing.
What the 2020 plan would have done
US anti-money-laundering rules under the Bank Secrecy Act already require banks and other covered financial businesses to collect, keep and pass on certain details about transfers of $3,000 or more. Passing the details along is known as the Travel Rule; collecting and keeping them is the Recordkeeping Rule.
In October 2020, the two agencies proposed (opens in a new tab) two changes:
- A much lower threshold for cross-border transfers: $250 instead of $3,000 for transfers that start or end outside the United States. Domestic transfers would have stayed at $3,000.
- Crypto written in explicitly: the rules would have spelled out that they apply to "convertible virtual currency" (the regulators' term for crypto such as bitcoin) and to digital assets that are legal tender.
Crypto wasn't outside the rules before this. FinCEN's 2019 guidance (opens in a new tab) already says crypto transfers by money transmitters, such as exchanges, can fall under the Travel Rule at $3,000 or more, or the same value in crypto. For an exchange, a $250 line would have meant collecting and sharing customer details on far more small international transfers.
Why the agencies dropped it
According to the notice, the agencies received nearly 3,000 comments, and most commenters opposed the lower threshold. They argued it would burden smaller institutions, disrupt people sending money home to family abroad and force businesses to hold more personal data and take on more liability for it. Some said the threshold should go up instead, because of inflation since the $3,000 line was set in 1995. Crypto companies largely opposed writing crypto into the rules, while some banks and money transmitters supported it.
The agencies give two main reasons for pulling it:
- Time. More than five years have passed, and they want fresh public feedback before adopting anything similar. They say pulling it assures the public that nothing similar becomes final unless people get another chance to comment.
- A changed crypto industry. They point to maturing markets and new legal frameworks, citing the GENIUS Act stablecoin law enacted on July 18, 2025. Any future change for crypto, they say, should take those developments into account.
This is the second clean-up of old crypto proposals in two months. On October 5, FinCEN announced it was withdrawing (opens in a new tab) a 2020 plan for reporting on crypto sent to and from unhosted (self-custody) wallets and a 2023 plan aimed at crypto mixing. CoinDesk reported (opens in a new tab) that the wallet plan would have required reports on transfers of more than $10,000. FinCEN called those withdrawals part of the administration's deregulatory agenda.
What this means for you
- Nothing new is asked of you. The $250 plan never took effect, so nothing changes in how you buy, sell or send crypto. The existing $3,000 threshold stays in place.
- Existing rules still apply. This only drops a proposed threshold change. It doesn't remove any anti-money-laundering rule US exchanges follow today, so expect the same identity checks as before.
- Privacy advocates welcomed it. Gavin Zavatone of the DeFi Education Fund wrote on X that Americans "shouldn't have to hand over their names, addresses, and account details just because they chose to move value on a blockchain," crypto.news reported.
- Rules can still change. The agencies left room for a new proposal later, after public comment. Learn how US crypto rules work and how exchange and self-custody wallets differ.
This is education, not legal or financial advice. It reflects the agencies' withdrawal notice, FinCEN's releases and news reports as of November 6, 2026.
Frequently asked questions
What is the Travel Rule?
It's a US anti-money-laundering rule under the Bank Secrecy Act. When a bank or other covered financial business sends a transfer of $3,000 or more, it must pass certain details about the sender and recipient along to the next institution in the chain. A companion rule, the Recordkeeping Rule, requires those businesses to collect and keep that information.
Does this mean my exchange will stop asking for my ID?
No. This withdrawal only drops a proposed change to the transfer threshold. It doesn't remove any existing anti-money-laundering rule, so expect your exchange's identity checks to continue.
Could the $250 threshold come back?
The agencies say they will not take further action on this 2020 proposal, and that it's being withdrawn so the public knows nothing similar will become final without another round of public comment. They also say any future changes for crypto should take recent developments into account. A new proposal would be a new rulemaking.
Is this advice to move crypto abroad?
No. This is education, not legal or financial advice. Sending crypto overseas has its own risks, including scams and tax reporting duties.
Sources
- Withdrawal notice: Threshold for the Requirement to Collect, Retain, and Transmit Information on Funds Transfers... (FR Doc. 2026-22809, filed November 6, 2026) (opens in a new tab) — FinCEN and Federal Reserve Board (Federal Register public inspection)
- Agencies Invite Comment on Proposed Rule under Bank Secrecy Act (October 23, 2020) (opens in a new tab) — FinCEN
- Application of FinCEN's Regulations to Certain Business Models Involving Convertible Virtual Currencies (FIN-2019-G001, May 2019) (opens in a new tab) — FinCEN
- FinCEN Announces Withdrawals of Proposed Digital Asset Related Rules (October 5, 2026) (opens in a new tab) — FinCEN
- U.S. scraps proposed $10,000 reporting rule for crypto sent to private wallets (opens in a new tab) — CoinDesk
- US Treasury, Fed withdraw $250 crypto Travel Rule proposal. What does it mean? (opens in a new tab) — crypto.news
Published November 6, 2026 by Dave McNaught. Educational content, not financial, legal or tax advice. Spot an error? Request a correction.
Dave McNaught
Dave McNaught has worked in IT since 1999 and founded All Business Technologies (ABT) in 2003, a Boston-area firm providing Managed IT, Cybersecurity, Managed AI, Web Design and App Development. He publishes The Crypto Guide.