US Treasury withdraws 2020 crypto travel rule proposal
FinCEN and the Fed rescind the travel rule proposal
On Friday, November 6, 2026, the US Treasury Department withdrew a proposed crypto reporting rule. The Financial Crimes Enforcement Network, known as FinCEN, and the Federal Reserve Board of Governors rescinded the proposal.
The proposal was first put forward in 2020. It would have changed the travel rule for convertible virtual currency, a term the filing uses for crypto assets.
Key points from the withdrawal
- The travel rule proposal was first proposed in 2020.
- It would have lowered the information-collection threshold from $3,000 to $250.
- FinCEN cited the age of the proposal, changes in the crypto industry, and a need for fresh public input.
- Crypto groups Coin Center and the Crypto Council for Innovation welcomed the withdrawal.
What FinCEN said in its filing
FinCEN said more than five years had passed since the proposal. It also said the convertible virtual currency industry had changed.
FinCEN said more public input would be helpful. It added: "The Agencies believe that any future, potential amendments to the Recordkeeping Rule and Travel Rule related to CVC should be considered in light of these recent developments to ensure that such amendments are fit for purpose."
The travel rule requires financial institutions to collect information on certain transfers. The 2020 proposal would have applied that requirement at a lower amount.
Why the proposal was originally raised
When the rule was proposed, FinCEN argued that bad actors were increasingly using smaller transactions to move illicit funds.
Crypto groups opposed the lower threshold. Coin Center had warned that lowering it from $3,000 to $250 would subject more ordinary transactions to what it called warrantless financial surveillance.
How crypto groups reacted
Coin Center said it welcomed the rescission in a blog post on Friday. It noted that Treasury had withdrawn another proposal last month on self-hosted wallets, which are wallets that a person controls themselves rather than through a company.
Coin Center said the two withdrawals closed several long-pending proposals that would have expanded financial surveillance under the Bank Secrecy Act.
Crypto Council for Innovation CEO Ji Hun Kim called the withdrawal the "right call." He said the proposal had not moved forward for several years, and that lowering the threshold to $250 for cross-border transfers would have placed undue burden on institutions.
What happens next
FinCEN did not announce a new proposal or a timeline. It said any future changes should be considered in light of recent developments in the industry.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.