A federal judge has blocked the Corporate Transparency Act (CTA), ruling the act is unconstitutional. The CTA was enacted as part of the Anti-Money Laundering Act of 2020.
“The Government says that the CTA is within Congress’ broad powers to regulate commerce, oversee foreign affairs and national security, and impose taxes and related regulations,” Judge Liles C. Burke wrote in the March 1 ruling, according to a Reuters report. “Because the CTA exceeds the Constitution’s limits on the legislative branch and lacks a sufficient nexus to any enumerated power to be a necessary or proper means of achieving Congress policy goals.”
The ruling came as the result of a legal challenge by the National Small Business Association against the secretary of the U.S. Treasury Department.
