Federal Court Says ‘Sensible’ Corporate Transparency Act Is Unconstitutional

The White House had championed the legislation to fight illicit activity.

Treasury Secretary Janet Yellen speaks at an event on the Biden administration’s economic strategy toward the Indo-Pacific in Washington on Nov. 2, 2023. Madalina Vasiliu/The Epoch Times

An Alabama federal court ruled that the Corporate Transparency Act (CTA) is unconstitutional, leaving the policy’s future unclear.

In 2021, Congress enacted legislation mandating that companies share their identities and information about beneficial owners. The law, which went into effect in January, was designed to combat illicit activity, including money laundering, tax fraud, and terrorist financing.