FinCEN and Fed Withdraw 2020 Crypto Transfer Rule Proposal

The Financial Crimes Enforcement Network (FinCEN) and Federal Reserve Board withdrew a 2020 proposal to tighten transfer rules, with the decision taking effect Monday, Nov. 9. The agencies did not announce a replacement timeline.

The proposal would have lowered the reporting threshold for certain transfers that start or end outside the United States from $3,000 to $250. It also would have clarified that the Recordkeeping and Travel Rules covered domestic and cross-border transfers involving convertible virtual currency and digital assets with legal-tender status for a recipient.

FinCEN and the Fed received nearly 3,000 public comments on the proposal, a significant majority of which were substantially similar form letters. The agencies cited the more than five years since the proposal and changes in the digital-asset industry, including the GENIUS Act, enacted July 18, 2025, to establish a framework for payment stablecoins.

Any similar future changes would require another public comment opportunity before a final rule. The agencies gave no date for a new proposal or comment period. Existing rules require banks and nonbank financial institutions to collect, retain and transmit information for covered transfers of $3,000 or more.