ST. LOUIS — Wes Smith, President and CEO of the National Association of Electrical Distributors (NAED), issued the following statement after the U.S. District Court for the Eastern District of Texas granted a preliminary injunction against the enforcement of the Corporate Transparency Act (CTA) and its beneficial ownership information (BOI) reporting requirements:
The court’s ruling is a significant victory for NAED members and small businesses nationwide, offering much-needed relief from the burdens of overly intrusive regulations.
Without this injunction, starting next year, our members would have faced the onerous task of reporting and constantly updating sensitive personal information about their owners and managers to the Financial Crimes Enforcement Network (FinCEN) within the Treasury Department.
The CTA represents an overreach that, while well-intentioned, would fail to address its stated goals of combating illegal activity. Instead, it unfairly burdens small businesses with bureaucratic red tape while exposing sensitive data to potential misuse.
Looking ahead, given that this injunction may be appealed, we are continuing to ask Congress to pass a delay in CTA enforcement this year and are requesting that the incoming Trump administration permanently revoke these and other unnecessary regulatory obstacles.
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