US Regulators Withdraw $250 Travel Rule Plan

The Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve have formally withdrawn a 2020 proposal that would have cut the Bank Secrecy Act threshold for cross-border funds transfers from $3,000 to $250 and spelled out that the rules cover crypto. The notice, published Monday in the Federal Register, says the agencies 'will not take further action' on the proposal. The withdrawal gives the public 'certainty' that no final rule will be issued without another chance to comment. The agencies cited the maturing of crypto markets and emerging new legal frameworks, such as the GENIUS Act stablecoin law, as reasons for pulling the proposal. The $3,000 threshold remains in place, and the existing Travel Rule stays unchanged. The withdrawal does not signal a retreat from enforcement, as FinCEN recently cut off the MEXC exchange from the US financial system over alleged sanctions evasion.