Supreme Court Strikes Down Removal Protections for Federal Regulators in 6-3 Ruling on June 29

The U.S. Supreme Court on June 29, 2026, ruled 6-3 to strike down for-cause removal protections that had shielded federal agency commissioners from being fired at will, overturning nearly a century of legal precedent. In Trump v. Slaughter, Chief Justice John Roberts held that the Federal Trade Commission's removal restrictions violate the separation of powers, overruling the 1935 Humphrey's Executor decision. The ruling originated from Trump's March 2025 firing of two Democratic FTC commissioners; the Court reversed a lower court order that had reinstated Commissioner Rebecca Slaughter.

The decision's logic extends to other independent agencies overseeing digital assets, including the Securities and Exchange Commission and Commodity Futures Trading Commission, making their commissioners removable at will. Legal observers expect both bodies' commissioners, who hold similar protections, to become subject to removal without cause.