FinCEN and Fed withdraw crypto Travel Rule proposal, citing need for comment

FinCEN and the Federal Reserve have withdrawn a proposal that would have explicitly written crypto into the Travel Rule definitions and lowered the cross-border recordkeeping threshold to $250. Regulators said any future attempt to lower the threshold or spell out crypto coverage will first go back out for public comment. The move removes an immediate compliance burden for crypto firms, but the underlying rulemaking could return, so traders should watch for a re-proposal.