FinCEN and the Federal Reserve have officially withdrawn their 2020 proposal to lower the cross-border crypto transaction reporting threshold from $3,000 to $250. The announcement came on November 6, 2026, ending a five-year debate over the rule's privacy and surveillance implications.
The proposal, which aimed to extend data-keeping obligations to smaller transfers, was shelved due to industry changes and the need for additional public input. FinCEN emphasized that the idea is not dead but will require reconsideration in light of recent developments.
Critics, including Coin Center, had argued that the $250 threshold would subject routine payments to warrantless financial surveillance. The group welcomed the withdrawal, noting it closes the book on several long-pending proposals that would have expanded financial surveillance.
The Crypto Council for Innovation also celebrated the decision, stating that lowering the threshold would have placed an undue burden on institutions. The rescission follows Treasury’s October withdrawal of proposed unhosted wallet and cryptocurrency mixing rules.