FinCEN, Fed Withdraw Proposal That Would Have Written Crypto Into Travel Rule Definitions

FinCEN and the Federal Reserve withdrew a proposal that would have explicitly written crypto into the definitions of the Travel Rule, the cross-border recordkeeping regime for financial institutions. The move leaves digital assets without explicit statutory footing in the rule's definitions for now, easing immediate compliance uncertainty for crypto firms. It matters because the Travel Rule is a core anti-money-laundering requirement, and how it applies to crypto transfers has been a live question for exchanges and custodians. What to watch next is whether the agencies re-propose the changes with a fresh comment period and whether the $250 threshold resurfaces.