The Biden administration has asked the US Supreme Court to allow enforcement of an anti-money-laundering law, citing national security and financial crime prevention as reasons. The request comes after a federal judge barred the government from enforcing the Corporate Transparency Act, which requires businesses to report information about their owners.
US Solicitor General Elizabeth Prelogar argued that the law is constitutional and falls within Congress’s authority under the Commerce Clause to regulate economic activities. She also noted that three other federal district courts had rejected similar requests to block the law.
Prelogar suggested that the Supreme Court could weigh in on the propriety of universal injunctions, which bar the government from enforcing laws nationwide. The Biden administration is appealing a ruling from the 5th Circuit that blocked the enforcement of the law, and Prelogar asked the justices to intervene to allow enforcement while its appeal moves forward.
The court’s conservative justices have indicated interest in addressing whether universal injunctions are proper. Universal injunctions have been used in both Democratic and Republican administrations to block laws and policies. If the Supreme Court grants review now, it could settle the remedial issue this Term without waiting for the appeals process to resolve.
Source: https://www.scotusblog.com/2025/01/biden-asks-justices-to-allow-enforcement-of-anti-money-laundering-law