Supreme Court rules CFPB single-director structure violates separation of powers in Seila Law

The Supreme Court held 5-4 in Seila Law LLC v. Consumer Financial Protection Bureau that the CFPB's single director, removable only for "inefficiency, neglect of duty, or malfeasance," violated separation of powers. Chief Justice John Roberts wrote the majority opinion joined by Thomas, Alito, Gorsuch, and Kavanaugh; Kagan dissented for Ginsburg, Breyer, and Sotomayor. The Court severed the for-cause removal restriction rather than striking down the agency, leaving the bureau intact but allowing the president to fire the director at will.