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US Treasury and Fed drop plan to lower crypto transfer reporting threshold to $250
FinCEN and the Federal Reserve have withdrawn a 2020 proposal that would have cut the international transfer reporting threshold from $3,000 to $250, keeping the higher figure in place.
Why it matters: The withdrawal keeps the $3,000 threshold for cross-border transfers and signals that US agencies are reassessing crypto reporting rules in light of the GENIUS Act.
Key points
- The joint withdrawal notice was filed on 6 Nov and takes effect on publication on 9 Nov.
- The proposal, published in October 2020, drew nearly 3,000 comments, most of them form letters opposing the lower threshold.
- The agencies cited the proposal's age and crypto market changes, including the GENIUS Act of 18 July 2025, as reasons for withdrawing.
The US Treasury's Financial Crimes Enforcement Network and the Federal Reserve Board have abandoned a plan to lower the reporting threshold for international crypto transfers to $250, keeping the existing $3,000 level. The two agencies filed a joint withdrawal notice on 6 Nov, and it is due to take effect when published on 9 Nov.
The original proposal, issued in October 2020, would have required banks and nonbank financial institutions to collect and retain information on smaller payments starting or ending outside the US. FinCEN's Travel Rule would also have required details to travel with those payments between institutions. Separate provisions would have explicitly covered convertible virtual currencies and digital assets with legal tender status.
Comments and privacy
Nearly 3,000 comments arrived from banks, money services businesses, trade associations and individuals, most of them substantially similar form letters. Respondents largely opposed the lower threshold, pointing to compliance costs for smaller institutions and the risk of holding more personal information. Crypto firms and trade groups generally opposed the crypto provisions, citing technical limits and the absence of an international messaging standard.
The agencies gave the proposal's age and developments in the crypto industry as their main reasons, noting more than five years had passed since October 2020. They also pointed to emerging legal frameworks such as the GENIUS Act, enacted on 18 July 2025, which set federal rules for payment stablecoin issuers. They said any similar amendments would need another round of public comment first.
What to watch: Any comparable amendments would require another opportunity for public comment before a final rule is issued, the agencies said.
Live updates on NewsFeeds:MacroStablecoinsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
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