US Treasury withdraws 2020 crypto reporting proposal, keeps $3,000 threshold
In brief
- US Treasury withdrew a proposal expanding crypto transaction surveillance requirements, Crypto Briefing reported.
- 2020 plan would have cut the cross-border crypto reporting threshold from $3,000 to $250.
- Bank Secrecy Act threshold for cross-border crypto transfers stays at $3,000.
- Exchanges and custodians avoid extra data-collection duties for smaller transfers.
- Fed and Congressional decisions on crypto will be crucial, Crypto Briefing said.
What the 2020 proposal would have done
Treasury's proposal was first put forward in 2020, and it targeted one specific area: cross-border cryptocurrency transactions. It would've changed the reporting rules under the Bank Secrecy Act by moving the threshold from $3,000 down to $250. That's a much lower bar for which transfers get reported.
Here's a simple example. Under the proposed rule, a $500 cross-border crypto transfer would have crossed the reporting line; under the current rule, it doesn't.
The lower bar never arrived.
What the withdrawal means for exchanges
So what actually changes? Not the threshold.
The current $3,000 threshold stays in place, per Crypto Briefing, which means exchanges and custodial institutions aren't taking on additional data-collection burdens for smaller transfers. Those are the businesses (exchanges and custodians) that would've had to collect data on transfers between $250 and $3,000 if the rule had gone ahead.
Crypto Briefing said the regulatory shift is seen as reducing pressure on the cryptocurrency market. The outlet didn't say who holds that view.
What comes next
The withdrawal isn't the final word, according to the same report.
"Future decisions by the Federal Reserve and U.S. Congress on cryptocurrency legislation will be crucial"
Crypto Briefing named the Fed and Congress as the two bodies whose crypto decisions matter from here. It also said any new regulatory challenges could hurt market sentiment. One proposal is off the table, but the outlet doesn't treat that as the end of the U.S. rulebook for crypto users, exchanges or custodians.
Frequently asked questions
What did the withdrawn Treasury crypto proposal want to change?
The proposal, first put forward in 2020, would have lowered the Bank Secrecy Act reporting threshold for cross-border cryptocurrency transactions from $3,000 to $250. It would have expanded surveillance requirements for crypto transactions.
What does the withdrawal mean for crypto exchanges and custodians?
The reporting threshold stays at $3,000, so exchanges and custodial institutions don't take on additional data-collection burdens for smaller transfers. Crypto Briefing said future decisions on crypto by the Federal Reserve and Congress will still be crucial.
