Treasury and Fed Withdraw Plan for $250 Cross-Border Travel Rule Threshold

The U.S. Treasury and Federal Reserve have abandoned a proposed $250 threshold for cross-border funds transfers, leaving the existing $3,000 level in place, including for qualifying crypto transfers under FinCEN guidance. The withdrawal preserves the status quo for reporting obligations that apply to banks and money services businesses, and by extension to crypto exchanges and other virtual asset service providers covered by the guidance. The $250 proposal had raised concerns that a much lower trigger would sharply increase compliance burdens and data collection for routine retail transfers. The decision matters because the threshold determines which cross-border transactions, including certain crypto transfers, must be reported and screened. What to watch next is whether FinCEN revisits the crypto-specific reporting framework separately, and whether other jurisdictions' lower thresholds influence future U.S. rulemaking.