The Supreme Court has reinstated a key provision of the Corporate Transparency Act (CTA), requiring owners of over 32.6 million small businesses to register personal information with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). This act, designed to combat money laundering and the misuse of anonymous shell companies, was previously blocked by a federal judge in Texas and held by the 5th U.S. Circuit Court of Appeals.

[Image credit: Pexel]

Key Details of the Ruling:

• What is Required: Small business owners must provide personal information, including photo IDs and home addresses, to FinCEN.
• Purpose: To deter financial crimes and increase transparency in corporate ownership.
• Legal Challenges: Opposed by Republican-led states, conservative groups, and business associations, the law was initially struck down on grounds that Congress overstepped its authority.

Reactions:

• Supporters: Labor, environmental, and progressive groups applaud the decision as a win for transparency.
• Opponents: Business organizations express concerns about compliance challenges and legal uncertainty. The National Small Business Association and Small Business & Entrepreneurship Council have called for clarity and leniency for late filers.

Next Steps:

• The Supreme Court’s decision allows enforcement to proceed while the Texas case continues.
• Advocates for repeal, including business leaders, urge Congress to reassess the mandate.

This decision marks a significant step in the federal government’s efforts to curb illicit financial activities, though its future enforcement and impact remain subjects of heated debate.

The Supreme Court ‘s decision could come Friday in the case about whether TikTok must shut down in a few days under a federal law that seeks to force its sale by the Chinese company that owns the social media platform used by 170 million people in the U.S.

The justices are weighing a free speech challenge to the law, which takes effect Sunday, against the national security concerns that prompted its enactment with broad bipartisan support last year. A lawyer for TikTok and ByteDance, its Chinese owner, told the court last week that TikTok will “go dark” on Sunday unless the justices grant it a temporary reprieve or strike down the law.

During courtroom arguments, most of the justices seemed likely to uphold the law.

Alongside the ongoing court case, a potential lifeline for TikTok has emerged. President-elect Donald Trump, who once supported banning the app, is exploring options to “preserve” TikTok, his incoming national security adviser, Florida Rep. Mike Waltz, said in a televised interview on Wednesday.

It’s not clear what authority Trump has to intervene, although he could direct the Justice Department not to enforce the law, which threatens sanctions against the technology companies that make the app available and host it. The Supreme Court indicated Thursday that the justices will issue at least one decision Friday, adhering to its custom of not saying which one. But it also departed from its usual practice in some respects, heightening the expectation that it’s the TikTok case that will be handed down.

Except for when the end of the term nears in late June, the court almost always issues decisions on days when the justices are scheduled to take the bench. The next scheduled court day is Tuesday.

And apart from during the coronavirus pandemic, when the court was closed, the justices almost always read summaries of their opinions in the courtroom. They won’t be there Friday.

Any opinions will post on the court’s website beginning just after 10 a.m. EST Friday.

A California appeals court has overturned the rape conviction of former San Francisco 49er Dana Stubblefield after determining prosecutors made racially discriminatory statements during the Black man’s trial.

The retired football player was sentenced to 15 years to life in prison in October 2020 after being convicted of raping a developmentally disabled woman in 2015 who prosecutors said he lured to his home with the promise of a babysitting job.

The Sixth Court of Appeals found Wednesday that prosecutors violated the California Racial Justice Act of 2020, a law passed during a summer of protest over the police killing of George Floyd. The measure bars prosecutors from seeking a criminal conviction or imposing a sentence on the basis of race.

Prior to the law, defendants who wanted to challenge their convictions on the basis of racial bias had to prove there was “purposeful discrimination,” a difficult legal standard to meet.

The appeals court said prosecutors used “racially discriminatory language” that required them to overturn Stubblefield’s conviction.

The case was “infected with tremendous error from the minute we started the trial,” said Stubblefield’s lead attorney, Kenneth Rosenfeld.

In April 2015, Stubblefield contacted the then-31-year-old woman on a babysitting website and arranged an interview, prosecutors said.

According to a report by the Morgan Hill Police Department, the interview lasted about 20 minutes. She later received a text from Stubblefield saying he wanted to pay her for her time that day, and she went back to the house.

The woman reported to the police that Stubblefield raped her at gunpoint, then gave her $80 and let her go. DNA evidence matched that of Stubblefield, the report said.

During the trial, prosecutors said police never searched Stubblefield’s house and never introduced a gun into evidence, saying it was because he was famous Black man and it would “open up a storm of controversy,” according to the appellate decision.

By saying Stubblefield’s race was a factor in law enforcement’s decision not to search his house, prosecutors implied the house would’ve been searched and a gun found had Stubblefield not been Black, the appeals court said. The reference to controversy also links Stubblefield to the events after the recent killing of Floyd based on his race.

Defense attorneys said there was no rape, and Stubblefield said the woman consented to sex in exchange for money.

“The trial had a biased judge who didn’t allow the evidence from the defense, the fact that she was a sex worker, to be heard in front of a jury,” Rosenfeld said. He called the incident a “transactional occasion” between Stubblefield and the woman.

He remains in custody until a hearing next week, during which his attorneys will ask a judge to approve a motion to release him. Prosecutors have several options, including asking the court to stay their decision so they can appeal to the state’s Supreme Court, or refile charges.

The Santa Clara District Attorney’s Office said it was “studying the opinion.”

Stubblefield began his 11-year lineman career in the NFL with the 49ers in 1993 as the league’s defensive rookie of the year. He later won the NFL Defensive Player of the Year honors in 1997 before leaving the team to play for Washington. He returned to the Bay Area to finish his career, playing with the 49ers in 2000-01 and the Raiders in 2003.

Fueled by pricier used cars, hotel rooms and groceries, inflation in the United States moved slightly higher last month in the latest sign that some price pressures remain elevated.

Consumer prices rose 2.7% in November from a year earlier, up from a yearly figure of 2.6% in October. Excluding volatile food and energy costs, so-called core prices increased 3.3%, the same as in the previous month. Measured month to month, prices climbed 0.3% from October to November, the biggest such increase since April. Core prices also rose 0.3% for a fourth straight month.

Wednesday’s inflation figures from the Labor Department are the final major piece of data that Federal Reserve officials will consider before they meet next week to decide on interest rates. The relatively mild November increase won’t likely be enough to discourage the officials from cutting their key rate by a quarter-point. The probability of a rate cut next week, as envisioned by Wall Street traders, rose to 98% after Wednesday’s inflation report was released, according to futures pricing tracked by CME FedWatch.

“It’s generally in the ballpark of what the Fed would like to see,” said Jason Pride, chief investment strategist at Glenmede, a wealth management firm. Though sharp increases for such items as groceries and hotel rooms increased overall inflation last month, those categories are often volatile. Pride noted that the cost of services, such as rents, car insurance, and airline fares, cooled in November.

Last week, Fed Chair Jerome Powell suggested that with the economy generally healthy, the Fed could reduce its key rate slowly.

“We’re not quite there on inflation, but we’re making progress,” Powell said. “We can afford to be a little more cautious.”

With the job market cooling, growth in Americans’ paychecks has slowed from a nearly 6% annual pace in 2022 to about 4% now, a rate nearly consistent with inflation at the Fed’s 2% target. Powell has said he doesn’t think the current job market is a driver of higher prices.

Randy Carr, CEO of World Emblem, a maker of patches, labels and badges for companies, universities and law enforcement agencies, said he is providing smaller wage increases, in the 3% to 5% range, than his company did during the height of inflation.

“Things have kind of leveled off,” he said.

Carr’s customers, which include the company that makes emblems for UPS uniforms, generally won’t accept price hikes much more than 2% a year. So World Emblem aims to offset the cost of its higher wages through greater efficiencies in manufacturing.

In September, the Fed slashed its benchmark rate, which affects many consumer and business loans, by a sizable half-point. It followed that move with a quarter-point rate cut in November. Those cuts lowered the central bank’s key rate to 4.6%, down from a four-decade high of 5.3%.

Though inflation is now way below its peak of 9.1% in June 2022, average prices are still about 20% higher than they were three years ago — a major source of public discontent that helped drive President-elect Donald Trump’s victory over Vice President Kamala Harris in November.

Grocery prices jumped last month, an uncomfortable reminder for consumers that food prices remain a big drag on households’ budgets. Beef prices leapt 3.1% just from October to November and are up 5% from a year earlier.

Egg prices, which have been volatile for more than two years, in part because of outbreaks of bird flu, soared 8.2% just last month. They are nearly 38% higher than a year ago.

Gas prices ticked up 0.6% from October to November, ending a string of declines. Still, gas is down more than 8% from a year earlier. Hotel prices leapt 3.2% from October to November and are 3.7% higher than a year ago.

Advocates for transgender rights are turning to a conservative-dominated Supreme Court after a presidential election in which Donald Trump and his allies promised to roll back protections for transgender people.

The justices on Wednesday are taking up the issue of gender-affirming care for transgender minors, which has been banned by Tennessee and 25 other Republican-led states.

The fight over whether transgender adolescents can access puberty blockers and hormonal treatments is part of a broader effort to regulate the lives of transgender people, including which sports competitions they can join and which bathrooms they can use.

Trump backed a national ban on such care as part of his 2024 campaign in which he demeaned and mocked transgender people.

In its waning days, the Biden administration, along with families of transgender adolescents, will appeal to the justices to strike down the Tennessee ban as unlawful sex discrimination and protect the constitutional rights of vulnerable Americans.

“The stakes are high, of course, for transgender adolescents, but also for the parents who are watching their children suffer, who are just trying to do right by their kids,” Chase Strangio, who represents the families at the Supreme Court, said in an interview. Strangio, a lawyer for the American Civil Liberties Union, will be the first openly transgender person to argue before the high court.

A lawyer for Tennessee will argue that the “life-altering gender-transition procedures” are risky and unproven and that it’s the state’s role to protect children.

Trump nominated three justices in his first term who pushed the court in a more conservative direction that included the decision in 2022 overturning the landmark Roe v. Wade ruling, which had protected abortion rights for nearly 50 years.

Yet one of Trump’s appointees, Justice Neil Gorsuch, also authored a ruling in 2020 that protected LGBTQ people from discrimination in the workplace under federal civil rights law.

The administration and transgender families both rely on that decision to bolster their arguments.

After Trump takes office on Jan. 20, 2025, it’s possible the new administration could weigh in on the case, which is not expected to be decided until the spring.

There are about 300,000 people between age 13 and 17, and 1.3 million adults who identify as transgender in the United States, according to the Williams Institute at the UCLA School of Law. The Williams Institute is a think tank that researches sexual orientation and gender identity demographics to inform laws and public policy decisions.

Most Republican-controlled states have adopted a ban similar to the one in Tennessee, and those laws mostly are in effect, despite legal challenges. The Tennessee case is the first time the nation’s top court will consider the constitutionality of the bans.

Sivan Kotler-Berkowitz, a 20-year-old college student in Massachusetts who is transgender, said his life would have been very different if he were just a few years younger and living in one of the states.

“These bans are denying people the opportunity to live and excel,” he said in an interview. “There are thousands of transgender youth across the country that are thriving just like me because we’ve had the love and understanding of our families and because we’ve had access to proper care.”

The bans in Tennessee and elsewhere have put families in the position of deciding whether to travel for ongoing health care, go without or wait until their children turn 18.

Erin Friday, a leader of Our Duty, an international group that supports the bans on gender-affirming care for minors, said the case is going to be as important as Roe v. Wade. She said upholding the Tennessee law would bolster the cases for the laws restricting sports participation and bathroom use.