US Treasury, Fed withdraw $250 crypto Travel Rule proposal. What does it mean?

The US Treasury Department’s Financial Crimes Enforcement Network and the Federal Reserve have withdrawn a proposal to lower the reporting and recordkeeping threshold for cross-border transfers from $3,000 to $250, leaving existing requirements unchanged. Summary FinCEN and the Federal Reserve have withdrawn their 2020 proposal to lower the reporting threshold for international transfers from $3,000 to $250, with the withdrawal taking effect on Nov. 9. The agencies cited changes in the digital asset industry and regulatory environment since 2020, while leaving open the possibility of introducing separate rules after further public consultation. The proposal had drawn nearly 3,000 public comments, including objections over financial privacy, compliance costs and the amount of personal information crypto businesses would have been required to collect. DeFi Education Fund policy lead Gavin Zavatone welcomed the withdrawal, arguing that the proposed requirements would have placed unnecessary data collection burdens on cryptocurrency users and businesses. According to a joint withdrawal notice filed by the agencies, the decision will take effect on Nov. 9, ending a rulemaking process th...