Key Takeaways
The Supreme Court ruled 6-3 in Trump v. Slaughter on June 29, 2026, that for-cause removal protections for Federal Trade Commission members are unconstitutional.
The decision overturns Humphrey's Executor v. United States, a 90-year-old precedent, and lets the president fire officials at independent agencies at will.
The ruling reaches the roughly two dozen multi-member agencies that police markets and fraud, including the SEC and CFTC, while the Court separately shielded the Federal Reserve.
The Supreme Court ruled on Monday that the for-cause protections shielding Federal Trade Commission members from being fired are unconstitutional, overturning a 90-year-old precedent and handing the president broad power over independent agencies. The 6-3 decision in Trump v. Slaughter, reported by CBS News, undoes Humphrey's Executor v. United States, the 1935 case that let Congress insulate agency officials from at-will removal.
Independent agencies were built to sit at arm's length from the White House. Congress staffed more than two dozen multi-member commissions with officials who could be removed only for cause, meaning inefficiency, neglect of duty, or malfeasance. The Court's conservative majority held that those officials exercise executive power and so must answer to the president, who can now remove them at will.
The reach goes well beyond the FTC. The same for-cause structure governs the Securities and Exchange Commission and the Commodity Futures Trading Commission, the two agencies that write and enforce the rules for securities, derivatives, and a fast-growing share of crypto. Their commissioners would now serve at the president's pleasure, which changes who ultimately steers market and fraud enforcement.
The justices carved out one exception. In a separate decision the same day, the Court rejected President Trump's attempt to remove Federal Reserve Governor Lisa Cook, leaving the central bank's independence intact for now.
The shift arrives while those regulators are already in contested territory, from the CFTC's approval of Kalshi's crypto perpetual futures to its scrutiny of Polymarket's marketing. Who controls the regulators has always shaped the rules. The pattern here is hard to ignore.
People Also Ask
What did the Supreme Court rule in Trump v. Slaughter?
The Court held 6-3 that for-cause removal protections for FTC members are unconstitutional, allowing the president to remove independent agency officials at will.
What is Humphrey's Executor and why does it matter?
Humphrey's Executor was a 1935 Supreme Court decision that let Congress protect independent agency officials from at-will firing. Trump v. Slaughter overturned it.
Does the ruling affect the SEC and CFTC?
Yes. The SEC and CFTC are multi-member agencies with the same for-cause protections, so their commissioners could now be removed by the president at will.
Is the Federal Reserve affected by the decision?
No. The Court separately blocked the president's attempt to fire Fed Governor Lisa Cook, preserving the central bank's independence for now.