FinCEN and the Federal Reserve withdraw proposal to lower th
On November 6, 2026, FinCEN and the Federal Reserve Board announced the joint withdrawal of the proposed rule of October 27, 2020. The proposal had originally sought to lower the threshold for cross-border transfer recordkeeping and the "travel rule" from $3,000 to $250, and to explicitly apply it to convertible virtual currency. The withdrawal notice is scheduled to be published in the Federal Register on November 9, and the current $3,000 threshold remains unchanged.
Event Timeline
- [11-06 14:30] U.S. Treasury and Federal Reserve withdraw proposal to lower the "travel rule" threshold for cross-border transfers (PANews)
- [11-06 14:33] Cross-border transfer "travel rule" threshold stays at $3,000 as FinCEN and Federal Reserve withdraw the lowering proposal (Odaily)
Background and Impact
On November 6, 2026, the U.S. Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board announced they would jointly withdraw a proposed rule published on October 27, 2020. PANews reported the announcement at 14:30 that day and Odaily at 14:33, with both sources citing identical announcement content. According to the announcement, the withdrawal notice is scheduled for official publication in the Federal Register on November 9, and the current $3,000 threshold remains unchanged.
The proposed rule had never taken effect since its publication on October 27, 2020. Its core content had two parts: first, lowering the applicable threshold for the "recordkeeping rule" and the "travel rule" for cross-border funds transfers from $3,000 to $250; second, explicitly applying the above rules to domestic and cross-border transactions involving convertible virtual currency (CVC) and digital assets with fiat currency status. The two agencies now said they will take no further action on the proposal.
As for the rule text, the withdrawal means the $3,000 threshold and the current scope of application remain as they are: the 2020 proposal's ideas of lowering the threshold to $250 and explicitly including CVC-related transactions will not move forward. Because the proposal itself had not taken effect, the withdrawal did not change already applicable compliance obligations; the change is that regulators have made a final disposition of this long-pending proposal. For users who frequently need to move funds between overseas platforms and manage accounts through channels such as Huobi HTX registration and APP download, Zhima Gate.io registration and APP download, Bitget registration and APP download, Binance registration and APP download, and OKX registration and APP download, the amount threshold that triggers recordkeeping and information transmission obligations remains $3,000. It should be noted that the announcement only concerns whether the proposed rule is kept or withdrawn, and does not constitute any adjustment to the permission or restriction of any trading activity.
The two sources show no substantive divergence on the facts: the proposal's publication date, the reduction from $3,000 to $250, the applicable subjects, and the November 9 publication in the Federal Register are all stated identically; only the publication times differ by 3 minutes, and the headline emphasis differs slightly — PANews emphasizes "withdraw the proposal to lower the 'travel rule' threshold for cross-border transfers," while Odaily emphasizes "threshold stays at $3,000," pointing to the same event.
Frequently Asked Questions
### What is the current threshold for the cross-border transfer "travel rule"?
It remains $3,000. The proposal withdrawn by FinCEN and the Federal Reserve Board had originally sought to lower it to $250; after the withdrawal, the current $3,000 threshold remains unchanged.
### When will the withdrawal notice be officially published?
According to the announcement, the withdrawal notice is scheduled for official publication in the Federal Register on November 9. Both agencies also said they will take no further action on the proposal.
### What does this mean for transactions involving convertible virtual currency (CVC)?
The 2020 proposal had sought to explicitly apply the rules to domestic and cross-border transactions involving CVC and digital assets with fiat currency status. With the proposal withdrawn, this clarification will not proceed, and the existing rule text remains as it is.