The U.S. Treasury Department and the Federal Reserve withdrew the proposal to set a $250 threshold for cross-border travel rules

The U.S. Treasury and the Federal Reserve have withdrawn a previously proposed rule draft that aimed to lower the threshold for the "Travel Rule" regarding cross-border fund transfers from $3,000 to $250. After the withdrawal, the $3,000 threshold continues to apply, including for eligible cryptocurrency transfers under current FinCEN guidelines.

The proposal was jointly issued by FinCEN and the Federal Reserve in 2020 and applies to fund transfers and remittances that originate or terminate outside the United States, while the domestic transaction threshold remains unchanged at $3,000. The proposal also clarifies that the relevant rules apply to convertible virtual currency transactions and digital assets with legal tender status, and requires financial institutions to collect, retain, and transmit specific transaction information as mandated.