FinCEN and the Fed withdraw the 2020 plan to cut the cross-border recordkeeping threshold from $3,000 to $250, ending a long crypto privacy fight

FinCEN and the Federal Reserve Board on Friday withdrew a proposed rule that would have lowered the dollar threshold for recordkeeping and Travel Rule requirements on funds transfers that begin or end outside the United States. The Block and crypto.news report that the threshold would have dropped from $3,000 to $250, and that the proposal dates from October 2020 and covered transfers involving convertible virtual currency. FinCEN's release says the agencies withdrew it jointly.

According to The Block, the agencies pointed to the more than five years that have passed, changes in the crypto industry, and the value of more public input. They said any future changes should take those developments into account. crypto.news reports that the existing $3,000 threshold still applies and that the withdrawal takes effect on November 9.

Coin Center, which had warned the lower threshold would allow warrantless surveillance of ordinary transactions, welcomed the move, and the Crypto Council for Innovation's Ji Hun Kim called it the right call, The Block reports. The Block adds that Treasury withdrew a separate proposal on self-hosted wallets and mixers last month. Neither report gives a date for any new proposal, though crypto.news says separate future rules remain possible after more public comment.