FinCEN and Fed Withdraw Proposal to Lower Cross-Border Crypto Reporting Threshold

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The U.S. Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve Board have withdrawn a proposal to lower the cross-border crypto transaction reporting threshold from $3,000 to $250. The joint notice, filed on November 6, takes effect on November 9. Nearly 3,000 comments were received, with most criticizing the move due to compliance costs and privacy risks for smaller firms. The agencies also cited the evolving regulatory landscape, including the GENIUS Act, which establishes federal oversight for payment stablecoin issuers. The decision reflects ongoing efforts to balance anti-money laundering objectives with the needs of liquidity and crypto markets.

Odaily Planet Daily report: On November 6, the U.S. Financial Crimes Enforcement Network (FinCEN) and the Board of Governors of the Federal Reserve System submitted a joint notice of withdrawal, abandoning the proposal to lower the threshold for collecting information on certain cross-border cryptocurrency transfers from $3,000 to $250. The withdrawal notice will take effect on November 9.

The two agencies received nearly 3,000 comments, with most opposing the lowering of thresholds due to concerns about increased compliance costs for small institutions and privacy risks from retaining more personal information. Both agencies stated that if similar revisions to the rules are considered in the future, they will seek public comment again before issuing final rules.

The two institutions also cited the development of the cryptocurrency industry and changes in the legal framework as factors in withdrawing the proposal, including the regulatory framework for payment stablecoins established by the GENIUS Act. The Act took effect on July 18, 2025, establishing federal rules for payment stablecoin issuers. (Bitcoin.com News)

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