The U.S. Supreme Court has temporarily reinstated the Corporate Transparency Act (CTA) while legal challenges continue. The court issued an emergency stay, blocking a federal judge’s injunction against the law, which requires businesses to disclose owner information to fight money laundering. Justice Ketanji Brown Jackson dissented.
The Biden Justice Department requested the Supreme Court uphold the CTA as the case proceeds. The court acted quickly, ruling just three days after Trump’s inauguration, despite his previous opposition to the law.
Passed in 2021, the CTA mandates that small businesses submit personal details to the Financial Crimes Enforcement Network (FinCEN) to increase transparency and reduce illicit financial activity.
The law has faced resistance from business groups and anti-regulatory advocates who are challenging it. Although the legal battle continues, the Supreme Court’s ruling keeps the CTA in effect for now.
