A recent Supreme Court ruling expanding President Donald Trump's authority to remove leaders of many independent federal agencies could have broader implications as key financial regulators move forward with rulemaking, including rules affecting digital assets.
The case began in 2025 when President Trump fired Rebecca Slaughter, a Democratic commissioner at the Federal Trade Commission. Last week, the Supreme Court ruled 6–3 in Trump's favor, expanding the president's authority to remove leaders of independent federal agencies, with the exception of the Federal Reserve.
The ruling comes as regulators like the Securities and Exchange Commission and the Commodity Futures Trading Commission are in the middle of a new era of cryptocurrency regulation with plans to implement rule changes, tailor their rules, and issue exemptions.
Both agencies at full strength are designed to operate with commissioners at the helm, with no more than three belonging to the same political party. However, the SEC currently has three Republican commissioners, while CFTC Chair Michael Selig is the sole commissioner at the agency.
Some say a full panel of commissioners is essential to healthy debate and produces rules that are more durable across administrations. Others argued the practical effects may be more limited. A former CFTC official said agency actions remain constrained by statutory requirements and the Administrative Procedure Act, regardless of how many commissioners are serving.
