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Supreme Court to reconsider a 90-year-old unanimous ruling that limits presidential power

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The justices could take the next step in a case being argued Monday that calls for a unanimous 90-year-old decision limiting executive authority to be overturned.

The court’s conservatives, liberal Justice Elena Kagan noted in September, seem to be “raring to take that action.”

They already have allowed Trump, in the opening months of the Republican’s second term, to fire almost everyone he has wanted, despite the court’s 1935 decision in Humphrey’s Executor that prohibits the president from removing the heads of independent agencies without cause.

The officials include Rebecca Slaughter, whose firing from the Federal Trade Commission is at issue in the current case, as well as officials from the National Labor Relations Board, the Merit Systems Protection Board and the Consumer Product Safety Commission.

The only officials who have so far survived efforts to remove them are Lisa Cook, a Federal Reserve governor, and Shira Perlmutter, a copyright official with the Library of Congress. The court already has suggested that it will view the Fed differently from other independent agencies, and Trump has said he wants her out because of allegations of mortgage fraud. Cook says she did nothing wrong.

Humphrey’s Executor has long been a target of the conservative legal movement that has embraced an expansive view of presidential power known as the unitary executive.

The case before the high court involves the same agency, the FTC, that was at issue in 1935. The justices established that presidents — Democrat Franklin D. Roosevelt at the time — could not fire the appointed leaders of the alphabet soup of federal agencies without cause.

The decision ushered in an era of powerful independent federal agencies charged with regulating labor relations, employment discrimination, the air waves and much else.

Proponents of the unitary executive theory have said the modern administrative state gets the Constitution all wrong: Federal agencies that are part of the executive branch answer to the president, and that includes the ability to fire their leaders at will.

As Justice Antonin Scalia wrote in a 1988 dissent that has taken on mythical status among conservatives, “this does not mean some of the executive power, but all of the executive power.”

Since 2010 and under Roberts’ leadership, the Supreme Court has steadily whittled away at laws restricting the president’s ability to fire people.

In 2020, Roberts wrote for the court that “the President’s removal power is the rule, not the exception” in a decision upholding Trump’s firing of the head of the Consumer Financial Protection Bureau despite job protections similar to those upheld in Humphrey’s case.

In the 2024 immunity decision that spared Trump from being prosecuted for his efforts to overturn the 2020 election results, Roberts included the power to fire among the president’s “conclusive and preclusive” powers that Congress lacks the authority to restrict.

But according to legal historians and even a prominent proponent of the originalism approach to interpreting the Constitution that is favored by conservatives, Roberts may be wrong about the history underpinning the unitary executive.

“Both the text and the history of Article II are far more equivocal than the current Court has been suggesting,” wrote Caleb Nelson, a University of Virginia law professor who once served as a law clerk to Justice Clarence Thomas.

Jane Manners, a Fordham University law professor, said she and other historians filed briefs with the court to provide history and context about the removal power in the country’s early years that also could lead the court to revise its views. “I’m not holding my breath,” she said.

Slaughter’s lawyers embrace the historians’ arguments, telling the court that limits on Trump’s power are consistent with the Constitution and U.S. history.

The Justice Department argues Trump can fire board members for any reason as he works to carry out his agenda and that the precedent should be tossed aside.

“Humphrey’s Executor was always egregiously wrong,” Solicitor General D. John Sauer wrote.

A second question in the case could affect Cook, the Fed governor. Even if a firing turns out to be illegal, the court wants to decide whether judges have the power to reinstate someone.

Justice Neil Gorsuch wrote earlier this year that fired employees who win in court can likely get back pay, but not reinstatement.

That might affect Cook’s ability to remain in her job. The justices have seemed wary about the economic uncertainty that might result if Trump can fire the leaders of the central bank. The court will hear separate arguments in January about whether Cook can remain in her job as her court case challenging her firing proceeds.



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Binance has been proudly nomadic for years. A new announcement suggests it’s chosen an HQ

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For years, Binance has dodged questions about where it plans to establish a corporate headquarters. On Monday, the world’s largest crypto exchange made an announcement that indicates it has chosen a location: Abu Dhabi, the capital of the United Arab Emirates.

In its announcement, Binance reported that it has secured three global financial licenses within Abu Dhabi Global Market, a special economic zone inside the Emirati city. The licenses regulate three different prongs of the exchange’s business: its exchange, clearinghouse, and broker dealer services. The three regulated entities are named Nest Exchange Limited, Nest Clearing and Custody Limited, and Nest Trading Limited, respectively.

Richard Teng, the co-CEO of Binance, declined to say whether Abu Dhabi is now Binance’s global headquarters. “But for all intents and purposes, if you look at the regulatory sphere, I think the global regulators are more concerned of where we are regulated on a global basis,” he said, adding that Abu Dhabi Global Market is where his crypto exchange’s “global platform” will be governed.

A company spokesperson declined to add more to Teng’s comments, but did not deny Fortune’s assertion that Binance appears to have chosen Abu Dhabai as its headquarters.

Corporate governance

The Abu Dhabi announcement suggests that Binance, which has for years taken pride in branding itself as a company with no fixed location, is bowing to the practical considerations that go with being a major financial firm—and the corporate governance obligations that entails.

When Changpeng Zhao, the cofounder and former CEO of Binance, launched the company in 2017, he initially established the exchange in Hong Kong. But, weeks after he registered Binance in the city, China banned cryptocurrency trading, and Zhao moved his nascent trading platform. Binance has since been itinerant. “Wherever I sit is going to be the Binance office,” Zhao said in 2020.

The location of a company’s headquarters impacts its tax obligations and what regulations it needs to follow. In 2023, after Binance reached a landmark $4.3 billion settlement with the U.S. Department of Justice, Zhao stepped down as CEO and pleaded guilty to failing to implement an effective anti-money laundering program.

Teng took over and promised to implement the corporate structures—like a board of directors—that are the norm for companies of Binance’s size. Teng, who now shares the CEO role with the newly appointed Yi He, oversaw the appointment of Binance’s first board in April 2024. And he’s repeatedly telegraphed that his crypto exchange is focused on regulatory compliance.

Binance already has a strong footprint in the Emirates. It has a crypto license in Dubai, received a $2 billion investment from an Emirati venture fund in March, and, that same month, said it employed 1,000 employees in the country. 



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Leaders in Congress outperform rank-and-file lawmakers on stock trades by up to 47% a year

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Stocks held by members of Congress have been beating the S&P 500 lately, but there’s a subset of lawmakers who crush their peers: leadership.

According to a recent working paper for the National Bureau of Economic Research, congressional leaders outperform back benchers by up to 47% a year.

Shang-Jin Wei from Columbia University and Columbia Business School along with Yifan Zhou from Xi’an Jiaotong-Liverpool University looked at lawmakers who ascended to leadership posts, such as Speaker of the House as well as House and Senate floor leaders, whips, and conference/caucus chairs.

Between 1995 and 2021, there were 20 such leaders who made stock trades before and after rising to their posts. Wei and Zhou observed that lawmakers underperformed benchmarks before becoming leaders, then everything suddenly changed.

“Importantly, whilst we observe a huge improvement in leaders’ trading performance as they ascend to leadership roles, the matched ‘regular’ members’ stock trading performance does not improve much,” they wrote.

Leadership’s stock market edge stems in part from their ability to set the regulatory or legislation agenda, such as deciding if and when a particular bill will be put to a vote. Setting the agenda also gives leaders advanced knowledge of when certain actions will take place.

In fact, Wei and Zhou found that leaders demonstrate much better returns on stock trades that are made when their party controls their chamber.

In addition, being a leader also increases access to non-public information. The researchers said that while companies are reluctant to share such insider knowledge, they may prioritize revealing it to leaders over rank-and-file lawmakers.

Leaders earn higher returns on companies that contribute to their campaigns or are headquartered in their states, which Wei and Zhou said could be attributable to “privileged access to firm-specific information.”

The upper echelon also influences how other members of Congress vote, and the paper found that a leader’s party is much more likely to vote for bills that help firms whose stocks the leader held, or vote against bills that harmed them. And stocks owned by leadership tend to see increases in federal contract awards, especially sole-source contracts, over the following one to two years.

“These results suggest that congressional leaders may not only trade on privileged knowledge, but also shape policy outcomes to enrich themselves,” Wei and Zhou wrote.

Stock trades by congressional leaders are even predictive, forecasting higher occurrences of positive or negative corporate news over the following year, they added. In particular, stock sales predict the number of hearings and regulatory actions over the coming year, though purchases don’t.

Investors have long suspected that Washington has a special advantage on Wall Street. That’s given rise to more ETFs with political themes, including funds that track portfolios belonging to Democrats and Republicans in Congress.

And Paul Pelosi, former House Speaker Nancy Pelosi’s husband, even has a cult following among some investors who mimic his stock moves.

Congress has tried to crack down on members’ stock holdings. The STOCK Act of 2012 requires more timely disclosures, but some lawmakers want to ban trading completely.

A bipartisan group of House members is pushing legislation that would prohibit members of Congress, their spouses, dependent children, and trustees from trading individual stocks, commodities, or futures.

And this past week, a discharge petition was put forth that would force a vote in the House if it gets enough signatures.

“If leadership wants to put forward a bill that would actually do that and end the corruption, we’re all for it,” said Rep. Anna Paulina Luna, R-Fla., on social media on Tuesday. “But we’re tired of the partisan games. This is the most bipartisan bipartisan thing in U.S. history, and it’s time that the House of Representatives listens to the American people.”



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Macron warns EU may hit China with tariffs over trade surplus

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French President Emmanuel Macron warned that the European Union may be forced to take “strong measures” against China, including potential tariffs, if Beijing fails to address its widening trade imbalance with the bloc.

“I’m trying to explain to the Chinese that their trade surplus isn’t sustainable because they’re killing their own clients, notably by importing hardly anything from us any more,” Macron told Les Echos newspaper in an interview published on Sunday.

“If they don’t react, in the coming months we Europeans will be obliged to take strong measures and decouple, like the US, like for example tariffs on Chinese products,” he said, adding that he had discussed the matter with European Commission President Ursula von der Leyen.

Macron has just returned from a three-day state visit in China, where he pressed for more investment as Paris seeks to recalibrate its relationship with the world’s second-largest economy. France’s goods trade deficit with China reached around €47 billion ($54.7 billion) last year, according to the French Treasury. Meanwhile, China’s goods trade surplus with the EU swelled to almost $143 billion in the first half of 2025, a record for any six-month period, according to data released by China earlier this year.

Tensions between France and China escalated last year after Paris backed the EU’s decision to impose tariffs on Chinese electric vehicles. Beijing retaliated by imposing minimum price requirements on French cognac, sparking fears among pork and dairy producers that they could be targeted next.

‘Life or Death’

Macron said the US approach to China was “inappropriate” and had worsened Europe’s position by diverting Chinese goods toward the EU market.

“Today, we’re stuck between the two, and it’s a question of life or death for European industry,” Macron said, while noting that Germany — Europe’s biggest economy — doesn’t entirely share France’s stance.

In addition to Europe needing to become more competitive, the European Central Bank too has a role to play in strengthening the EU’s single market, Macron said, arguing that monetary policy should take growth and jobs into account, not just inflation, he said.

He also said the ECB’s decision to continue selling the government bonds it holds risks pushing up long-term interest rates and weighing on economic activity.

“Europe must — and wants to — remain a zone of monetary stability and credible investment,” Macron said.



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