The US Withdraws the $250 Threshold Plan for Crypto Transfers: Will the $3,000 Limit Continue?

The U.S. Treasury Department has withdrawn its proposed rule that would have lowered the reporting threshold for crypto transfers from $3,000 to $250, a plan developed jointly by FinCEN and the Federal Reserve. The retreat leaves the existing $3,000 threshold in place for now, easing compliance burdens for exchanges and wallet providers that would have had to collect and report far more customer data. The proposal had drawn industry pushback over the volume of additional paperwork and privacy concerns tied to small retail transfers. It matters because the threshold determines how much counterparty information virtual asset service providers must gather under U.S. anti-money-laundering rules. Watch next for whether FinCEN revives a revised version of the $250 limit or keeps the $3,000 line as the baseline for crypto reporting.