Supreme Court Reinstates
The U.S. Supreme Court has reinstated the Corporate Transparency Act (CTA) at the federal government’s request while a legal challenge continues in a lower court. The court’s emergency stay lifts an injunction that had temporarily blocked the law, with Justice Ketanji Brown Jackson as the sole dissenter.
The Biden-era Justice Department sought the Supreme Court’s intervention last month, and the ruling came just three days after President Trump’s inauguration. Although Trump’s Justice Department did not withdraw the request, he had opposed the CTA during his first term.
Enacted as part of the 2021 defense bill, the CTA mandates that small business owners disclose personal information, including birth dates and addresses, to the Financial Crimes Enforcement Network. The law was designed to curb money laundering by increasing transparency in company ownership.
However, the measure has faced significant opposition from business organizations and anti-regulatory advocates who argue it imposes excessive burdens on small businesses. Critics have pushed for delays in its implementation, citing privacy concerns and compliance costs.
As legal battles continue, the CTA’s future remains uncertain. For now, reinstating the law means businesses must comply with reporting requirements unless further court rulings alter its enforcement.
