The U.S. Supreme Court has temporarily reinstated the Corporate Transparency Act (CTA) by granting an emergency stay, halting a lower court’s injunction.
The CTA, enacted in 2021, requires small businesses to disclose personal information about their owners to combat money laundering and financial crimes. The law has faced opposition from business groups citing regulatory burdens.
Justice Ketanji Brown Jackson was the lone dissenter in the Court’s decision. Although legal challenges continue in lower courts, the Biden administration petitioned to keep the law active during litigation.
The Supreme Court’s ruling supports continued enforcement for now. While a separate injunction still limits compliance requirements, the case remains ongoing and significant for transparency efforts in U.S. business practices.
