The US District Court of Maine issued an order on 14 February 2025 on whether the beneficial ownership reporting rule under the Corporate Transparency Act (CTA) is constitutional.
This case concerns the constitutionality of the Corporate Transparency Act (“CTA”), which requires certain corporate entities to report their beneficial owners to the Department of the Treasury.
The plaintiff challenges the CTA on the sole ground that Congress lacked the power to enact it. The court ruled in favour of the government, finding the CTA a valid use of congressional power under the Commerce Clause. It determined that regulating corporate entities, even dormant ones, is economic and impacts interstate commerce. The court granted the government’s motion for summary judgment, denied the plaintiff’s, and upheld the CTA’s constitutionality.
