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US Treasury withdraws the crypto 'Travel Rule' that would have lowered the reporting threshold to $250

FinCEN and the Federal Reserve Board rescinded on 6 November the crypto 'Travel Rule' proposal first made in 2020, which would have required financial institutions to collect and keep information on crypto transfers of $250 or more, down from the current $3,000 threshold.

• FinCEN said more than five years had passed, the industry had changed, and the agencies wanted more public input; its original argument was that bad actors move illicit funds in smaller amounts.
• Coin Center welcomed the move and said the $250 threshold would have meant 'warrantless financial surveillance' of ordinary transactions; it noted Treasury withdrew the unhosted-wallet and mixer proposals in October.
• Crypto Council for Innovation's Ji Hun Kim called it the 'right call' because the lower threshold would have burdened institutions. A withdrawn proposal can come back in a new form.