Overview
- The Supreme Court, which ruled on June 29, 2026, held in Trump v. Slaughter that the FTC Act’s statutory for‑cause removal protections violate Article II and expressly overruled the 1935 Humphrey’s Executor precedent.
- In a companion decision, the Court preserved for‑cause protection for Federal Reserve Governor Lisa Cook, with justices citing the Fed’s unique role in managing monetary policy as the reason for a narrow carve‑out.
- The ruling has already enabled presidential removals of commissioners and raises immediate risks that removing a few members could block agency quorums and stall rulemaking, enforcement, and adjudication at agencies like the NLRB, SEC, and CFTC.
- The decision has opened multiple new legal threads and political responses, including court challenges that cite the D.C. Circuit and proposals in Congress to restore statutory safeguards or clarify which agencies remain protected.
- The change reverses a nine‑decade framework that insulated independent commissions, which means businesses, workers, crypto firms, and consumers may face faster swings in enforcement and more regulatory uncertainty as administrations change.