The **U.S. Supreme Court** has agreed to **reinstate a federal anti-money laundering law**, granting the **Biden-era Justice Department’s request** while a **legal challenge** against it continues in a **lower court**.
The Corporate Transparency Act (CTA) and Its Impact
The **Corporate Transparency Act (CTA)**, originally passed as part of the **2021 National Defense Authorization Act**, mandates that **millions of small business owners** disclose **personal information**, such as **dates of birth and addresses**, to the **Financial Crimes Enforcement Network (FinCEN)**. The law was designed to **combat money laundering, tax evasion, and other financial crimes**.
However, the law has faced **strong opposition from business groups and anti-regulatory advocates**, who argue that it **unfairly burdens small businesses** with **complex compliance requirements**.
Legal Battle and Supreme Court Ruling
Earlier this year, a **federal judge issued an injunction** blocking the enforcement of the **CTA**. However, the **Supreme Court’s emergency stay** now **temporarily halts the injunction**, allowing the law to remain in effect while the legal battle continues.
**Justice Ketanji Brown Jackson** was the **only dissenter** in the Supreme Court's ruling.
Trump’s Position on the CTA
The court issued its decision just **three days after President Trump’s inauguration**. While Trump’s **Justice Department did not withdraw the request**, he had **previously opposed** the law during his **first term in office**, arguing that it **created unnecessary regulatory burdens** for **small businesses**.
What’s Next for Business Owners?
With the **CTA now reinstated**, millions of **small business owners** must comply with **FinCEN reporting requirements** or risk **significant penalties**. Meanwhile, business groups and legal experts are expected to continue their **efforts to delay or challenge** the law in **lower courts**.
The Supreme Court’s ruling **signals the growing legal battle** between **government transparency initiatives** and **business privacy rights**, setting the stage for **further litigation** in the coming months.
