The Financial Crimes Enforcement Network and the Federal Reserve have officially withdrawn a 2020 proposal that aimed to lower the threshold for cross-border fund transfers from $3,000 to $250. The existing $3,000 limit remains in effect for financial institutions.
The abandoned plan also sought to redefine money to explicitly include convertible virtual currencies and digital assets. Industry participants had expressed concerns regarding technical limitations and the absence of international messaging standards for crypto transactions.
Regulators cited the passage of time and the maturation of the crypto market as reasons for the withdrawal. They specifically noted the GENIUS Act, a stablecoin law enacted on July 18, 2025, as a factor that necessitates a more tailored approach to future regulations.
The agencies received nearly 3,000 public comments on the proposal, with many respondents arguing that a lower threshold would create excessive burdens for smaller institutions. There is currently no timeline or confirmation regarding any potential future proposals.
This decision follows other recent reversals by the Treasury, including the cancellation of proposals related to unhosted wallets and crypto mixing. However, the agency continues to pursue enforcement actions against specific entities, such as the recent move against the MEXC exchange.
