On December 3, 2024, a federal district court in Texas granted a preliminary nationwide injunction against the Corporate Transparency Act (CTA), which mandates U.S. businesses to report their beneficial ownership to the Treasury Department. The court ruled that while Congress has the power to regulate corporate activity, the Commerce Clause does not allow for mandatory disclosure of information for law enforcement purposes, deeming the CTA unconstitutional in that aspect. The injunction affects approximately 32.6 million existing reporting companies. We are uncertain at this time as to how the Financial Crimes Enforcement Network (FinCEN) will react or if the filing deadlines will be adjusted. Stay tuned for further updates.