​Treasury Halts Enforcement of Biden’s Rule, Delivering Major Victory for Small Businesses​

The Treasury Department has announced it will suspend enforcement of penalties and fines associated with the Corporate Transparency Act Beneficial Ownership Information (CTA BOI) reporting rule.

The decision, posted late Sunday night on X, effectively places the controversial regulation on hold.

In its statement, the Treasury Department confirmed that enforcement will not proceed under the current regulatory deadlines:

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“The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines…”

The Treasury Department is announcing today that, with respect to the Corporate Transparency Act, not only will it not enforce any penalties or fines associated with the beneficial ownership information reporting rule under the existing regulatory deadlines…

— Treasury Department (@USTreasury) March 2, 2025

Additionally, the department stated that penalties and fines would not be applied even after the upcoming rule changes take effect.

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The department further indicated that it would issue a proposed rulemaking to limit the scope of the regulation to foreign reporting companies only:

“…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.”

The Treasury Department will further be issuing a proposed rulemaking that will narrow the scope of the rule to foreign reporting companies only.

— Treasury Department (@USTreasury) March 2, 2025

The move marks a significant shift in how the CTA BOI rule is applied.

Initially introduced as a measure to combat money laundering and illicit financial activity, the rule required small businesses to report extensive ownership details.

However, critics have long argued that it disproportionately burdened American entrepreneurs and small businesses while failing to effectively target foreign financial crimes.

Treasury Secretary Scott Bessent framed the decision as a win for small businesses:

“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.”

Bessent also reinforced President Donald Trump’s stance on reducing government overreach:

“This is a victory for common sense,” said US Treasury @SecScottBessent. “Today’s action 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.”

“This is a victory for common sense,”said US Treasury @SecScottBessent “Today’s action 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.”

— Treasury Department (@USTreasury) March 2, 2025

President Trump also weighed in on Truth Social, making it clear that he intends to eliminate the rule entirely:

“Exciting news! The Treasury Department has announced that they are suspending all enforcement of the outrageous and invasive Beneficial Ownership Information (BOI) reporting requirement for U.S. Citizens. This Biden rule has been an absolute disaster for Small Businesses Nationwide. Furthermore, Treasury is now finalizing an Emergency Regulation to formally suspend this rule for American businesses. The economic menace of BOI reporting will soon be no more.”

The decision follows months of legal and political back-and-forth over the CTA BOI rule.

As reported by RedState in December 2024 and January 2025, there were multiple injunctions attempting to halt the regulation while the Biden-Harris administration pushed for its enforcement.

Following Trump’s inauguration, the Department of Justice paused litigation related to the rule for further review.

However, small business owners remained uncertain about compliance obligations until this latest announcement.

Since the late 1990s, small businesses have accounted for between 43.5% and 50.7% of the United States’ gross domestic output (GDP), generating trillions of dollars in economic activity.

In 2014, small businesses contributed approximately $5.9 trillion to the national GDP, compared to $7.7 trillion generated by large businesses.

While the Treasury Department’s decision signals relief for small business owners, calls remain for a full repeal of the CTA BOI rule.

Advocates for deregulation argue that the rule should never have been implemented, and pressure is mounting on lawmakers to ensure that it is permanently revoked.

With Treasury’s latest move, the Biden-era regulation appears to be on its way out, but small business owners are being urged to stay engaged and push for a complete repeal to prevent further regulatory overreach in the future.

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