Aden Ferguson
As of January 1st, 2024, several new financial regulations have gone into effect that will impact businesses and individuals across the country.
One of the most significant changes is the requirement for all cryptocurrency exchanges and payment services to register with the Financial Crimes Enforcement Network (FinCEN). Previously, only exchanges dealing with fiat currency were required to register. Now, any business that facilitates digital asset transactions must register with FinCEN and comply with anti-money laundering regulations. Proponents argue this will help curb illicit cryptocurrency transactions, while critics warn it places an undue burden on small startup exchanges.
In a reprieve for individuals, a provision in the latest stimulus bill blocked a plan to require financial institutions to report digital asset transactions over $600 to the IRS. Lawmakers felt this would be invasive and deter cryptocurrency adoption. However, businesses receiving cryptocurrency payments still need to report transactions as income.
On the small business front, the Consumer Financial Protection Bureau has instituted new reporting requirements for lenders of small business loans. Lenders must now provide extensive demographic data on borrowers to ensure loans are being distributed equitably across communities. Opponents argue this creates unnecessary paperwork, while supporters believe it is an important step toward financial inclusion.
Finally, changes to overtime rules under the Fair Labor Standards Act take effect this month. The salary threshold for mandatory overtime pay will rise from $35,568 per year to $39,812 per year. This means employers must pay time-and-a-half for any salaried workers making under that amount who work over 40 hours per week.
These regulatory changes illustrate the evolving world of finance and labor laws. While they aim to protect consumers, manage risk, and create fairness, they also create new administrative hurdles for businesses and individuals to navigate in 2024.
