Texas Federal Court Blocks Beneficial Ownership Reporting Rule
issued a preliminary injunction temporarily halting the implementation of a rule that mandates businesses to report their beneficial ownership information to the Financial Crimes Enforcement Network (FinCEN). This rule, established under the Corporate Transparency Act (CTA), was set to take effect on January 1.The injunction follows a lawsuit filed by the National Federation of Independent Business and its members, challenging the constitutionality of the CTA. The plaintiffs argue that the legislation oversteps Congress’s authority to regulate interstate commerce, infringes on First Amendment rights by compelling speech and limiting freedom of association, and violates the Fourth Amendment by requiring businesses to disclose private information.
For more details on the preliminary injunction, click here.
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