The U.S. Supreme Court has reinstated the Corporate Transparency Act (CTA) at the federal government’s request while a legal challenge proceeds in a lower court.
The court’s emergency stay temporarily lifts a federal judge’s injunction that had blocked the law, which requires millions of business entities to disclose owner information. Justice Ketanji Brown Jackson was 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 law during his first term.
Enacted as part of the 2021 defense bill, the CTA mandates small business owners provide personal details like birth dates and addresses to the Financial Crimes Enforcement Network to combat money laundering. The law has faced opposition from business groups and anti-regulatory advocates seeking to delay its implementation.
