How did the Free Enterprise Fund case determine the balance of powers?

The Free Enterprise Fund case addressed the structure and authority of the Public Company Accounting Oversight Board (PCAOB) and examined its implications for the balance of powers among the branches of government. The Supreme Court determined that the PCAOB's design, which insulated its members from removal by the President and placed significant authority in the hands of Congress, violated the Constitution's separation of powers doctrine.

The case asserted that the PCAOB was established in a way that diminished the executive branch's role in oversight and enforcement of regulatory laws. The ruling emphasized that the President must have the ability to remove executive branch officials to ensure accountability and responsiveness, reinforcing the principle that executive power must be vested in the President.

This decision underscored the importance of maintaining a proper balance of authority and accountability among the legislative, executive, and judicial branches, marking a significant interpretation of the separation of powers as it pertains to regulatory agencies.