Trump’s CTA Reporting Rule Rewrite Can’t Delay Suit, Court Told

A legal challenge to the Corporate Transparency Act should continue pending regulatory revisions because no new rule can resolve the law’s underlying constitutional issues, two Texas business owners told a federal court.

Samantha Smith and Robert Means, who claim Congress encroached on state authority with the CTA’s business reporting requirements, opposed the US Treasury Department’s request to hold their case in abeyance pending a new reporting rule’s finalization. It wouldn’t be appropriate to stay the case while Treasury considers a rule it may lack the authority to promulgate, the pair’s response said on Thursday.

“The CTA’s text notes in five ...