President Donald Trump is lauding a rule change in his Treasury Department that removes the investigating need for “beneficial ownership information,” probably following a force from Elon Musk.
The businessman and head of the Department of Government Performance, Elon Musk, made the announcement one day after he announced on X that he would “look into” changing the law in response to a problem about it. Trump and Musk were seen posing for photos over the weekend at Mar-a-Lago and returning up on Air Force One on Sunday night.
Companies were required to report details about their valuable users to the Treasury Department’s Financial Crimes Enforcement Network as per the Biden-era law.
The purpose of the law was to reduce shell companies and funds trafficking, and a beneficial proprietor is defined as someone who has significant control over a reporting company.
Trump criticized it as an “absolute crisis” for small businesses and claimed the Treasury is also working on a new rule to dismiss it.
He wrote,” The economic threat of BOI reporting will soon be gone.”
In a series of X content, the Treasury Department explained the decision, noting that it would not impose penalties or charges related to the monitoring law.
Trump’s tax threats could stymie upcoming trade agreements.
The Treasury Department announced that a proposed rulemaking would “restrict the context of the law to only foreign reporting businesses.” Treasury makes this decision in order to support hard-working American citizens and small businesses and make sure that the law is properly adapted to serve the public interest.
Treasury Secretary Scott Bessent called this a “victory for popular impression.” The actions taken today fit President Trump’s bold plan to rein in costly regulations, particularly those imposed on small businesses, which are the backbone of the country’s economy.
