FinCEN, Fed Withdraw Proposal to Add Crypto to Travel Rule Definitions

The withdrawal keeps crypto outside the formal Travel Rule definitions for now, but the regulators' framing matters more than the retreat: any future move on lowering the threshold to $250 or explicitly covering crypto will restart with public comment. That signals the door is open rather than closed, and it shifts the near-term question from whether crypto gets pulled into the recordkeeping regime to how much notice the industry gets before it does. Watch whether a revised proposal re-emerges and what comment period accompanies it.