Attorney Wire Briefing: July 3, 2026
Supreme Court rulings on FTC removal protections, birthright citizenship, transgender athlete restrictions, geofence warrants, plus DOJ e-commerce compliance agreements and FEC guidance to watch.
Good morning — it’s Friday, July 3, 2026.
It was a busy week at the U.S. Supreme Court. Here are six key legal developments we’re following.
Estimated read time: 4 minutes
Lead Story
Supreme Court Expands Presidential Power in FTC Firing Dispute
What happened: The U.S. Supreme Court upheld President Trump’s removal of Federal Trade Commission member Rebecca Slaughter, overruling the 1935 precedent that protected FTC commissioners from at-will removal. The 6–3 decision held that the FTC Act’s for-cause removal restriction violates the separation of powers by limiting the president’s Article II removal authority.
Why it matters: The ruling expands presidential control over independent agencies and strengthens Article II challenges to agency structures and enforcement actions involving officials protected from presidential removal.
Implication: Counsel may preserve Article II objections in agency enforcement matters, and regulated entities may cite the decision when challenging rulemaking, investigations, or adjudications involving for-cause removal protections.
The Docket
Supreme Court Maintains Federal Reserve Insulation From Executive Removal
The U.S. Supreme Court, in a 5–4 decision, denied the Trump administration’s request to remove Federal Reserve Governor Lisa Cook while her legal challenge proceeds. The Court kept Cook in office and required notice and an opportunity to respond before any final removal decision. Chief Justice John Roberts emphasized that the Federal Reserve’s independence is central to its design.
Why it matters: The ruling preserves the Federal Reserve’s independence from presidential removal and reinforces its ability to conduct monetary policy free from direct political control. Future disputes will likely focus on whether removal is supported by valid cause and proper statutory procedures.
Read more: Wall Street Journal | Order
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Supreme Court Rejects Trump Birthright Citizenship Order
In Trump v. Barbara, the U.S. Supreme Court blocked President Trump’s executive order directing federal agencies to deny citizenship to children born in the United States to parents who are unlawfully or temporarily present. The Court held that the Fourteenth Amendment guarantees birthright citizenship, reaffirming United States v. Wong Kim Ark.
Why it matters: The ruling prevents the executive branch from restricting birthright citizenship through executive action and limits agencies’ ability to require citizenship documentation based solely on a parent’s immigration status.
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Supreme Court Upholds State Restrictions on Transgender Female Athletes
In West Virginia v. B.P.J. and Little v. Hecox, the U.S. Supreme Court upheld West Virginia and Idaho laws limiting girls’ and women’s school sports teams to students classified as female based on biological sex. The Court rejected the Title IX challenge, holding that states may adopt sex-based eligibility rules to promote safety and competitive fairness.
Why it matters: The decision gives states greater authority to enforce biological-sex eligibility requirements for girls’ and women’s sports and limits Title IX and Equal Protection challenges to similar laws, though litigation over differing state and school policies is likely to continue.
Read more: New York Times | Opinion
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Supreme Court Holds Geofence Searches Trigger Fourth Amendment Scrutiny
In Chatrie v. United States, the U.S. Supreme Court held, 6–3, that police conduct a Fourth Amendment search when they obtain cellphone Location History data through a geofence warrant. Justice Elena Kagan’s opinion for five justices applied Carpenter v. United States to provider-held Location History data, concluding that users retain a reasonable expectation of privacy even when the data is obtained from a third-party technology company. The Court remanded for the Fourth Circuit to determine whether the multi-step warrant satisfied the Fourth Amendment’s probable-cause and particularity requirements.
Why it matters: The decision limits the government’s reliance on the third-party doctrine in geofence cases and sets a threshold requirement that access to provider-held Location History data must satisfy Fourth Amendment scrutiny. The ruling does not categorically bar geofence warrants, but it shifts future litigation toward probable cause, particularity, geographic scope, duration, and officer discretion in multi-step location-data requests.
Read more: New York Times | Opinion
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Alibaba, AUS Enter $600 Million DOJ Non-Prosecution Agreements
Alibaba Group Holding Ltd. and AUS Merchant Services agreed to pay $600 million under non-prosecution agreements with the U.S. Department of Justice over allegations they failed to prevent illegal sales of pharmaceuticals, controlled substances, and related products through Alibaba.com and AliExpress. Alibaba admitted failing to prevent about 80,000 illegal import sales between 2016 and 2024, while AUS admitted weaknesses in its anti-money-laundering controls.
Why it matters: The resolution signals increased DOJ scrutiny of e-commerce platforms and payment processors whose compliance controls fail to prevent illegal third-party sales. It underscores the importance of robust seller screening, product controls, transaction monitoring, and AML compliance.
Read more: Reuters | Non-
Partner Signal
Geopolitical Risk Puts Large-Firm Deals on Hold
Fifty percent of lawyers at firms with 1,000+ attorneys said geopolitical risk delayed client deals, while 25% reported clients exiting deals. The impact is greatest in cross-border trade, banking, finance, and energy.
What We’re Watching
FEC Guidance Expected on Coordinated Party Spending
Following the Supreme Court’s 6–3 ruling striking down limits on coordinated party spending, campaign-finance lawyers are awaiting Federal Election Commission guidance before the November midterms.
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