On December 16, 2025, the Eleventh Circuit lifted the injunction that had blocked Treasury from enforcing the Corporate Transparency Act (CTA) against members of the National Small Business Association. The court held that the CTA constitutionally regulates economic activity by requiring certain entities to disclose beneficial ownership information to FinCEN. The decision reverses a 2024 district court ruling that had found Congress exceeded its authority by regulating business formation. The appellate court emphasized that operating a corporate entity is a commercial activity subject to federal regulation, and that the CTA’s numerous exemptions mitigate constitutional concerns. This ruling comes against the backdrop of significant regulatory changes. Treasury’s revised rule now largely exempts U.S. citizens and domestic companies, narrowing the CTA’s practical reach to approximately 12,000 foreign entities, down from earlier estimates of 32 million companies. The case returns to the Northern District of Alabama, but the stay on enforcement has been lifted. While litigation over the CTA continues, this decision strengthens the government’s position that the statute falls within Congress’s authority, particularly with respect to foreign commerce.