Eleventh Circuit Confirms Constitutionality of the Corporate Transparency Act

By: Margaret Karakashian, Esq.

On December 16, 2025, the U. S. Court of Appeals for the Eleventh Circuit reversed a prior decision in National Small Business United et al vs US Department of the Treasury et al Decision, No. 24-10736 and upheld the Corporate Transparency Act (“CTA”) as constitutional under the Commerce Clause. The Court also rejected the assertion that the CTA violated the Fourth Amendment. While this decision confirms the U.S. government’s power to enforce the CTA, at this time, FinCEN’s March 2025 rule still stands, which limits the beneficial ownership reporting requirements to foreign entities and removes such requirements for U.S. companies and U.S. persons.

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