The U.S. Supreme Court in a decision issued Monday ruled the Consumer Financial Protection Bureau’s single-director structure violates the separation of powers between the executive and legislative branches and is unconstitutional while also ruling that the CFPB can continue to operate.
In a 5-4 decision in Seila Law v. Consumer Financial Protection Bureau, the Court ruled the CFPB’s leadership by a sole director “lacks a foundation in historical practice and clashes with constitutional structure by concentrating power in a unilateral actor insulated from presidential control,” Chief Justice John Roberts wrote in the majority opinion for the Court.
