Treasury Urges Further Freeze on Corporate Transparency Act Suit

The US Treasury Department moved to freeze yet another constitutional challenge to the Corporate Transparency Act pending the finalization of a new rule for reporting a company’s beneficial ownership.

The government’s motion sought to counter a request for summary judgment filed last month by Samantha Smith and Robert Means, who argue the CTA unconstitutionally encroaches upon state authority to regulate intrastate economic activity.

Smith and Means implored the US District Court for the Eastern District of Texas not to wait for new regulations to set aside the law, while the Treasury Department urged a pause.

“The practicality of this approach ...