The U.S. Supreme Court temporarily reinstated the Corporate Transparency Act (CTA), which mandates business owners disclose personal information to combat money laundering.
This decision came after the federal government requested the stay, halting a lower court’s injunction blocking the law.
The CTA, passed in 2021, affects millions of businesses and aims to prevent financial crimes. Justice Ketanji Brown Jackson dissented, arguing there was insufficient urgency to justify immediate action.
The case will return to the 5th U.S. Circuit Court of Appeals for further review. The Supreme Court’s ruling allows the government to move forward with the law’s implementation while the legal challenge continues.
Justice Neil Gorsuch supported the stay but also suggested addressing the broader issue of district court-issued universal injunctions.
