According to The Block, the U.S. Treasury Department has withdrawn a proposal that would have expanded requirements for cryptocurrency transactions under the financial intelligence unit’s travel rule implementation.
The proposal, which sought to increase reporting obligations for blockchain transfers involving certain thresholds and parties, was formally reversed by the Treasury. No timeline or replacement measure was announced in the withdrawal statement.
The travel rule, originally developed to help financial institutions identify and report suspicious cross‑border movements, was intended to be updated to cover additional transaction details for crypto assets. The Treasury’s decision comes after internal review and consultation, though no public comment period was extended.
Analysts noted that the withdrawal removes the need for firms to implement new automated checks for blockchain‑based transfers that meet the expanded criteria. Existing obligations under current law remain in force.
