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

The US Treasury and Federal Reserve have withdrawn a proposal that would have lowered the cross-border travel rule threshold to $250, leaving the existing $3,000 threshold in place, including for qualifying crypto transfers under FinCEN guidance. A lower threshold would have expanded reporting obligations on smaller crypto transfers, so keeping $3,000 reduces compliance burden on exchanges and users. Traders should note this is a modest regulatory relief for crypto payments and transfers, though the underlying travel rule reporting regime remains intact.