The US Treasury's Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve withdrew a regulatory proposal that would have lowered the reporting threshold for cross-border remittances from $3,000 to $250, according to the Federal Register published on the 9th. The agencies originally announced the proposal on October 27, 2020, intending to expand information collection requirements to cover smaller transactions including those involving digital assets like Bitcoin. The agencies cited over five years of market evolution and legal environment changes, including the enactment of the GENIUS Act in July 2025, as reasons for the withdrawal. The withdrawal takes effect from the 9th, while the existing $3,000 reporting threshold for remittance transactions remains in place.
FinCEN and Federal Reserve Proposed $250 Threshold in October 2020
The two agencies jointly announced the remittance information regulation amendment on October 27, 2020. Under existing US rules, financial institutions such as banks must collect and retain sender and recipient information for remittance transactions of $3,000 or more, and transmit this data to other financial institutions. The 2020 proposal aimed to lower the threshold for cross-border remittances to $250. For example, a $500 overseas remittance previously fell below the $3,000 threshold, but would have been subject to information collection requirements if the amendment had been implemented. The proposal also sought to clarify that remittance information recording, retention regulations, and the Travel Rule apply to domestic and international transactions using digital assets such as Bitcoin.
Financial Industry Submitted Approximately 3,000 Comments on Proposal
The financial industry raised concerns that the expanded scope of regulated transactions would increase management costs and heighten personal information protection burdens. The two agencies received approximately 3,000 comments on the proposal.
GENIUS Act Established Stablecoin Regulatory Framework in July 2025
FinCEN and the Federal Reserve stated that they are withdrawing the existing plan given that over five years have passed since the regulatory proposal was announced and the digital asset market and legal environment have changed. The agencies specifically considered the establishment of a new institutional environment, including the enactment of the GENIUS Act in July 2025, which created a stablecoin regulatory framework in the United States. The two agencies stated that additional public comment would be necessary if they pursue similar regulations in the future.
Current $3,000 Reporting Threshold Remains Unchanged
This action does not abolish existing remittance information regulations or the Travel Rule itself. The currently enforced $3,000 threshold remains in effect, and only the regulatory expansion plan proposed in 2020 has been withdrawn.
FAQ
What did FinCEN and the Federal Reserve withdraw on the 9th?
The agencies withdrew a regulatory proposal originally announced on October 27, 2020, that would have lowered the reporting threshold for cross-border remittances from $3,000 to $250 and clarified application to digital asset transactions.
Why did the US agencies withdraw the 2020 remittance reporting proposal?
The agencies cited over five years of changes in the digital asset market and legal environment since the proposal was announced, including the enactment of the GENIUS Act in July 2025, and stated that approximately 3,000 public comments were received raising concerns about increased management costs and personal information protection burdens.
