Supreme Court expands Trump’s authority over agencies but blocks tariff and Fed power grabs

The Supreme Court just redrew the map of presidential power, and the results could reshape crypto regulation for years. In a pair of landmark rulings this term, the Court handed the president the ability to fire commissioners at independent agencies like the SEC and CFTC at will, while simultaneously blocking the administration’s unilateral tariff authority and preserving the independence of the Federal Reserve.

On February 20, 2026, the Court ruled 6-3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act does not authorize the president to impose tariffs. That ruling invalidated a sweeping set of trade barriers that had been imposed under emergency declarations on imports from Canada, Mexico, and China. The power to tax imports, the Court affirmed, belongs to Congress.

Then in late June 2026, the Court ruled that the president can dismiss commissioners from independent regulatory bodies, including the SEC and CFTC, at will. But the justices drew a clear line at the Federal Reserve. Governors at the Fed retain their protections against at-will removal, preserving the central bank’s institutional independence from direct presidential control.

Bitcoin briefly surged approximately 1.75-2% after the tariff ruling hit the wires, breaching $68,000 before pulling back.

The SEC and CFTC have been the two agencies most directly involved in shaping digital asset regulation. The SEC has pursued enforcement actions against exchanges, token issuers, and DeFi protocols. The CFTC has staked its claim over derivatives and certain commodity tokens. The president can now replace the commissioners leading those efforts with a phone call, making regulatory strategy at these agencies a direct extension of whoever occupies the White House.

The Court’s rulings create a fundamental tension for anyone building or investing in digital assets. Expanded presidential authority could accelerate regulatory changes at the SEC and CFTC, while the explicit preservation of Fed independence means interest rate decisions and monetary policy remain on a separate track. Regulatory policy at the SEC and CFTC is now less insulated from political cycles than at any point in modern history, with the entire framework governing digital assets potentially pivoting with each election cycle.

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