Treasury Department suspends enforcement of the Corporate Transparency Act

The Treasury Department announced the suspension of enforcement of the Corporate Transparency Act, sanctioned by Joe Biden in 2021. In a statement the agency noted that it "not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines, but it will further not enforce any penalties or fines against U.S. citizens or domestic reporting companies or their beneficial owners after the forthcoming rule changes take effect either."

The Treasury Department "will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only. Treasury takes this step in the interest of supporting hard-working American taxpayers and small businesses and ensuring that the rule is appropriately tailored to advance the public interest."

In the release, Treasury Secretary Scott Bessent called the measure "a victory for common sense." Bessent noted that this initiative "is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy."

Trump celebrates the change and blasts Biden

Trump himself applauded the move on his Truth Social account. The president, who called the announcement "exciting," criticized the rule passed by his predecessor: