LUBBOCK—Today, the Center for the American Future, TPPF’s litigation team, filed suit against the Financial Crimes Enforcement Network (“FinCEN”). The suit argues that in publishing a new rule, FinCEN exceeded the Federal Government’s constitutional authority under the Commerce Clause.
The challenged rule requires the disclosure of personal, sensitive information to the Federal Government whenever a person transfers residential real estate into an LLC, corporation, or a trust in some cases, unless the transfer is financed. The rule will go into effect on December 1, 2025 unless it is stopped.
“For too long, the Federal Government has pushed its power over interstate commerce beyond its honest limits,” said TPPF attorney Clayton Calvin. “This upsets the balance of power so neatly struck in our Constitution and is bad for Americans.”
TPPF senior attorney Matt Miller added, “The federal government is a government of enumerated powers. That does not include the power to force disclosure of private information in purely intrastate real estate transactions. It is time for courts to restore proper constitutional boundaries.”
The case is Corley v. U.S. Dep’t of the Treasury, filed in the U.S. District for the Northern District of Texas. It asks the court to strike down the rule and enforce the limits of the federal commerce power.
To read the text of the complaint, click here.
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