The Supreme Court has temporarily reinstated the Corporate Transparency Act (CTA), lifting a federal judge’s injunction that had blocked the law. “The court’s emergency stay lifts an injunction issued by a federal judge that had blocked the Corporate Transparency Act,” allowing the law to move forward—for now. Justice Ketanji Brown Jackson was the sole dissenter.
The U.S. Department of Justice requested the Supreme Court’s intervention after a lower court ruling stalled the CTA’s enforcement. The ruling comes shortly after a new administration took office.Enacted in early 2021 as part of an annual defense bill, the CTA requires many small businesses to disclose ownership details. This includes submitting personal information, such as birth dates and addresses, to the Financial Crimes Enforcement Network.
Supporters argue the CTA helps combat financial crimes by increasing transparency. Critics, however, claim it imposes burdens on small business owners.For now, the law remains in effect pending further legal challenges.
