A direct decision by President Donald Trump has triggered a legal dispute that now threatens to derail the most anticipated legislation by the cryptocurrency sector. The case involves Rebecca Slaughter, a Democratic commissioner of the Federal Trade Commission (FTC) fired by the president, and her husband, Justin Slaughter, a top lobbyist pushing for the crypto market structure bill. This conflict underscores how a presidential executive action could sabotage one of his administration’s main regulatory goals.
At the heart of the controversy is Rebecca Slaughter’s lawsuit against the Trump administration over her dismissal, which a D.C. federal court found unconstitutional in July. Now, the Supreme Court will review the case, which could overturn a nearly century-old legal precedent known as Humphrey’s Executor v. United States. This precedent has protected the independence of commissioners at key agencies like the FTC, SEC, and CFTC, preventing the president from removing them at will.
A Legal Conflict with Political Repercussions
The Supreme Court’s decision, not expected until 2026, could redefine executive power in the United States. If the court rules in favor of Trump, the president would gain unprecedented control over the day-to-day operations of federal agencies considered independent. “The fact that the president can fire agency officials means that they’re now under the thumb of the White House,” explained Todd Phillips, a law professor at Georgia State University, noting that “that’s never been the case before.”
This situation places Justin Slaughter in a complex position. For years, he has worked to pass the crypto market structure bill, a project that would legalize much of the trading and investment activity with digital assets in the country. The success of this bill heavily depends on bipartisan support and collaboration from regulators like the SEC and CFTC, whose independence is now in question. The industry’s leading companies view this bill as their primary objective.
The Future of Crypto Regulation at Stake
The legal uncertainty is already having effects on Capitol Hill. A group of twelve Democratic senators, whose support is vital for the bill’s passage, has conditioned their vote. They are demanding assurances that the composition of the SEC and CFTC will remain bipartisan. Currently, the CFTC is operating with a lone Republican acting chair, and the SEC has only one Democratic commissioner. Trump has not nominated Democrats to fill the existing vacancies.
The irony is that one of the Trump administration’s most forceful actions could cause one of its most ambitious legislative projects to fail. According to a White House spokesperson, Kush Desai, “President Trump pledged to cement America’s dominance in crypto,” but the erosion of bipartisan trust has put the bill in a difficult position. The future of crypto regulation in the country hangs in the balance, tied to the fate of the independence of federal agencies.
