BLOCKEDConsumer alert, published November 9, 2026
The Financial Crimes Enforcement Network (FinCEN) and the Federal Reserve have withdrawn a 2020 proposal that would have spelled out how funds-transfer recordkeeping rules and the Travel Rule apply to convertible virtual currency. In a joint notice in the Federal Register dated November 9, 2026, the agencies said they want additional public input before considering a future proposal. The move matters most to people who send money across borders and to the businesses that handle crypto and bank transfers for them.
What changed
FinCEN and the Federal Reserve withdrew their 2020 proposed rule on funds-transfer recordkeeping and the Travel Rule. That is what the agencies’ joint withdrawal notice in the Federal Register, dated November 9, 2026, says.
The agencies gave one reason. They said they want to seek additional public input before they consider a future proposal.
This is a withdrawal. It is not a final rule. The November 9, 2026 notice does not set an effective date, and it does not make the proposed changes law.
The Travel Rule is the name for the requirement that certain information travel along with a funds transfer as it passes from one financial institution to the next. Recordkeeping rules cover what institutions must keep on file about those transfers.
The original proposal came from the same two agencies. According to the proposed rule published in the Federal Register on October 27, 2020, FinCEN and the Federal Reserve proposed two main things:
- Lowering the threshold for certain cross-border funds transfers. That would have brought more of those transfers under the recordkeeping and Travel Rule requirements.
- Clarifying that convertible virtual currency, often called CVC, and digital assets with legal tender status were covered by the funds-transfer and transmittal-of-funds recordkeeping and Travel Rule regulations.
The 2026 withdrawal notice says the agencies are seeking further public input rather than putting those proposed changes into effect.
Who it affects
The proposal was aimed at the institutions that move money, not at individual customers directly. Banks and other financial institutions are the ones that keep the records and pass the information along with a transfer.
Still, rules like these shape what you experience as a customer. They can affect what information a bank or crypto business asks you for, and which of your transfers get recorded.
Two groups were most closely tied to the 2020 proposal:
- People who send money across borders. The proposal would have lowered the threshold for certain cross-border funds transfers. The withdrawal means that change is not moving forward under this proposal.
- People who buy, hold or send crypto. The proposal would have clarified that convertible virtual currency and digital assets with legal tender status were covered by these rules. That clarification is not being put into effect by this notice.
The agencies’ notice does not say the withdrawal changes how any existing rule applies to crypto today. Read it narrowly. It pulls back a set of proposed changes. It does not announce that crypto transfers are free of recordkeeping or reporting duties.
What happens next
According to the November 9, 2026 Federal Register notice, FinCEN and the Federal Reserve plan to seek additional public input before considering a future proposal.
That leaves several steps that may or may not happen. The agencies could gather comments, write a new proposal, and later decide whether to adopt a final rule. Each of those stages would normally come with its own public notice.
The notice does not set a date for any of this. There is no new effective date. There is no new proposal yet.
What we don’t know yet
The facts in the agencies’ notice leave some real questions open:
- How and when the agencies will collect public input. The notice says the agencies will seek it. It does not give a comment deadline or a format.
- Whether a future proposal will look like the 2020 one. The agencies said they would consider a future proposal. They did not say what it would include.
- Whether the cross-border threshold change will return. The 2020 proposal would have lowered it. The withdrawal notice does not say whether a future version would do the same.
- How a future proposal would treat crypto. The 2020 proposal would have clarified coverage of convertible virtual currency and digital assets with legal tender status. A future proposal might handle that differently, or not at all.
Until the agencies publish more, any claim about what the next rule will say is a guess.
What you should do now
For most readers, nothing changes today. The withdrawal does not add a new requirement for you, and it does not remove one.
A few practical steps still make sense:
- Keep your own records. Save confirmations for crypto purchases, sales and transfers, and for cross-border money transfers. Good records help if a transfer goes wrong or a question comes up later.
- Expect your provider’s process to stay the same for now. The notice does not tell banks or crypto businesses to change what they ask you for.
- Watch for the next notice. If FinCEN and the Federal Reserve open a comment period, members of the public can weigh in. The notice says input is what the agencies are looking for.
- Get professional help for business questions. If you run a business that sends or receives crypto or funds transfers for others, talk to a lawyer about your current obligations. This article is not legal advice.
- Check tax questions separately. This notice is about recordkeeping and the Travel Rule, not taxes. For questions about reporting crypto on your return, talk to a tax professional.
Ignore "new crypto rule" fee demands
News about crypto rules can give scammers a script. Be wary of any call, text, email or social media message that says a new federal rule requires you to pay a fee, “verify” your wallet, or move your coins to a new account. The November 9, 2026 notice from FinCEN and the Federal Reserve withdraws a proposal. It does not ask individual users to do anything. If you get a message like this, do not reply, click or send money. Report it to the FTC at ReportFraud.ftc.gov or the FBI at ic3.gov. If you have a problem with a bank or money transfer provider, you can file a complaint with the CFPB at consumerfinance.gov/complaint. If you already sent money or account details, call your bank or card issuer using the number on the back of your card.
The short version: the agencies stepped back from the 2020 plan so they can hear from the public first. No new rule is in effect, and no date has been set for one.
For the background, see our crypto scams and regulation guides.
Check, verify or complain
Sources
- Federal Register, joint FinCEN and Federal Reserve withdrawal notice federalregister.gov · primary source
- Federal Register, original proposed rule federalregister.gov · primary source
Leah writes US Financer's Consumer Alerts: scam warnings and money rule changes issued by federal agencies, state attorneys general, regulators and courts. Each alert starts from the official notice, says what is confirmed and what is not known yet, and lists the agency's own page…
Ruth is US Financer's standards editor. Every article goes through her checks before and after it is published: each rate, fee, cap, deadline and rule is matched against its primary source, every law named is linked to its official text, and anything that cannot be…
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