FinCEN and the Fed withdraw 2020 proposal to cut transfer thresholds and clarify virtual currency coverage

What happened

On 6 Nov 2026 the Financial Crimes Enforcement Network (FinCEN) announced that it is withdrawing a proposed rule on the Recordkeeping Rule and the Travel Rule. The Board of Governors of the Federal Reserve System (the Board) is withdrawing the proposal jointly with FinCEN. The two agencies published the joint proposal on 27 Oct 2020. The withdrawal notice, FR Doc 2026-22809, is scheduled for publication in the Federal Register on 9 Nov 2026, and the withdrawal takes effect as of that publication.

What changed

The Recordkeeping Rule and the Travel Rule require banks and nonbank financial institutions to collect, retain and transmit information on funds transfers and transmittals of funds of $3,000 or more. The 2020 proposal would have reduced that threshold from $3,000 to $250 for transfers that begin or end outside the United States.

The proposal would also have clarified the meaning of "money" in the rules. That change would have specified that the rules apply to domestic and cross-border transactions involving convertible virtual currency (CVC) and digital assets that have legal tender status to a recipient.

The agencies say they received nearly 3,000 comments. According to the notice, companies that provide CVC-related services generally opposed the CVC part of the proposal, while some depository institutions and money services businesses supported it. The agencies say they will not take further action on the proposal.

Who is affected

• Banks and nonbank financial institutions subject to the Recordkeeping Rule and the Travel Rule.
• Money services businesses and other firms that handle CVC transfers.
• Firms that send or receive funds transfers that begin or end outside the United States.

What happens next

The agencies give two reasons for the withdrawal. First, more than five years have passed since the proposal, and the agencies say more public feedback would be useful before any similar amendments. They say no final rule will be issued without an additional opportunity for public comment. Second, the agencies say the CVC industry has changed significantly since 2020, and that any future CVC amendments to the two rules should be considered in light of those developments. As an example of a new legal framework, the notice cites the GENIUS Act, the payment stablecoin statute enacted on 18 Jul 2025.