US Treasury withdraws crypto surveillance proposal, easing market pressure

The U.S. Treasury Department has withdrawn a controversial proposal aimed at expanding surveillance requirements for cryptocurrency transactions. This proposal, initially put forth in 2020, intended to lower the threshold for cross-border cryptocurrency transaction reporting from $3,000 to $250, under the Bank Secrecy Act. The withdrawal maintains the current $3,000 threshold, thus relieving exchanges and custodial institutions from additional data-collection burdens for smaller transfers. This regulatory shift is seen as reducing pressure on the cryptocurrency market, potentially fostering a more favorable environment for Bitcoin and other digital assets.