FinCEN Drops $250 Crypto Travel Rule After Six-Year Debate

The November 9 withdrawal ends a 2020 proposal that would have expanded recordkeeping obligations for smaller international transfers. Crypto advocates welcomed the decision, while major US banks are pressing regulators to address illicit-finance gaps in decentralized markets. Financial institutions must retain existing compliance controls, with stablecoin regulation creating new questions for future rulemaking. US regulators have abandoned a six-year-old plan to expand financial surveillance of smaller international transfers, retreating from a proposal that drew objections over privacy, implementation costs and the treatment of cryptocurrency transactions.