U.S. Regulatory Rollback Continues with Latest Treasury Announcement
As part of a deregulatory blitz that has developed into one of the trademarks of the second term of the Trump Presidency, several notable agencies of the United States government have been tasked with reducing the perceived over-regulation of the various American financial markets they govern. Following the U.S. Justice Department’s recent announcement to shutter its National Cryptocurrency Enforcement Team to foster increased investment and development within the crypto space, the Treasury Department announced a series of sweeping measures of their own aimed at reducing burdensome regulations that have long stifled domestic businesses and financial institutions small and large and further reduce “federal overreach.”
On April 9th, the Treasury – alongside the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN) – eliminated 15 individual rules and guidance materials that had collectively governed American business practices for years. The move builds on two additional Biden-era regulations recently rescinded by the Office of the Comptroller of the Currency (OCC) in the spring of 2025. The eliminated rules, some dating back decades and now viewed as obsolete, and others imposed during the Biden administration, had placed significant regulatory and subsequent financial burdens on the backbone of the American economy – its small businesses. By cutting this red tape, the Treasury aims to ensure small businesses can thrive without the weight of unnecessary compliance costs.
The latest announcement also compounds a landmark announcement made by the Treasury in March in which an interim final rule was issued that effectively removed the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act.1 By revising the definition of a “reporting company” under the interim rule, all entities created in the United States — including those previously known as “domestic reporting companies” — and their beneficial owners are exempted from the requirement to report BOI to the regulator, while still requiring entities formed under law of a foreign country to maintain their respective reporting requirements.1 This move will reportedly liberate American businesses from estimated costs of upwards of $10 billion collectively to establish the various protocols and assume the costly manpower that would be required to maintain compliance with the initial regulations in their first-year of reporting. With FinCEN planning to finalize this rule by year’s end, the move will also save the previously-covered American businesses an estimated $9 billion collectively per year in each year to follow.
“Treasury’s planned actions are a part of President Trump’s bold agenda to unleash American prosperity by reigning in burdensome regulations, in particular for small businesses that are the backbone of the American economy,”2 said Treasury Secretary Scott Bessent following the announcement of the rollback. The moves are not expected to stop here however. Over the coming months, the Treasury plans to continue its aggressive review of IRS rules and banking regulations to further reduce compliance burdens and enhance access to capital for small businesses. By streamlining examination practices and rethinking outdated policies, the administration believes it is paving the way for greater investment in America’s industrial base and local communities. The measures taken in early 2025 signal that several of Trump’s “America First” campaign promises are beginning to unfold and seek to create a unique economic environment where businesses can innovate, hire, and grow without fear of government interference or costly sanctions for compliance failures. Time will tell however the potential ramifications that might be felt on the American financial system and the domestic movement against illicit financial activity given the reduction in safeguards now present to govern small businesses and protect the American people.
The list of specific measures that will be mitigated can be found here: Eliminating Unnecessary IRS Internal Revenue Bulletin Guidance
Citations
1. “FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons, Sets New Deadlines for Foreign Companies.” Gov, 21 Mar. 2025.
2. “Treasury Department Takes Action to Unleash Financial Sector and Unburden Small Businesses through Elimination of Unnecessary, Duplicative, and Costly Regulations.” U.S. Department of the Treasury, 9 Apr. 2025.