US Supreme Court Issues Three Decisions Impacting Federal Power Structure｜Rewire News Morning Brief

The Supreme Court Upholds Fed's Independence but Overturns 91-Year Precedent Allowing President to Freely Dismiss Heads of Other Independent Agencies. Federal Power Map Redrawn in One Day.

1｜Supreme Court Upholds Fed, Removes 91-Year Protection Umbrella for Independent Agencies

The U.S. Supreme Court on Monday issued two rulings simultaneously, delineating a new boundary of federal power. In a 5-4 decision, it ruled that Trump could not dismiss Fed Governor Lisa Cook, with Chief Justice Roberts stating that Congress has "good reason" to protect the independence of Fed Governors. On the same day, in a 6-3 decision, it overturned the longstanding 91-year-old Humphrey's Executor precedent, determining that the President has the authority to freely dismiss heads of independent regulatory agencies such as the FTC.

The Court has established a dual-layer system. Monetary policy sits behind a constitutional firewall, while the protection umbrella for other independent agencies has been completely removed. The FTC, EEOC, CPSC, which have been politically insulated for nearly a century, saw the end of that era on Monday. For the tech industry, the FTC's antitrust investigations into large tech companies will now be conducted under a chairperson who can be replaced by the President at any time.

(Source: Fortune / Axios / NPR / CNN)

2｜After Running Into Federal Roadblocks, Anthropic Turns to California, Meta Internally Restricts Claude to Prevent Model Distillation

Anthropic reached an agreement with California Governor Newsom, allowing all state departments and municipal governments to use Claude at half price. Anthropic had previously insisted on prohibiting the use of Claude to monitor U.S. citizens and deploy autonomous weapons in Pentagon contract negotiations, which Defense Secretary Hegseth rejected, leading the contract to be awarded to OpenAI. The federal government pushed Anthropic away, and California picked it up.

On the same day, The Information reported on internal Meta documents calling for engineers to restrict the use of Claude Code and Codex, citing concerns about output seeping into Llama training data posing a model distillation risk. Meta is developing an internal alternative called MetaCode. It is also reported that Amazon may pay higher fees to Anthropic under a new agreement. Anthropic's technology is becoming a dividing line in the tech power map. While the federal government sees it as a risk, California views it as a solution, with the largest investor raising stakes and the biggest competitor in abstention.

(Source: TechCrunch / The Information / PYMNTS)

3｜DeepSeek Open Sources DSpark Inference Framework, Achieving Up to 85% Speed Boost

DeepSeek has released the open source inference optimization framework DSpark under the MIT license. Without the need for hardware upgrades or model retraining, the framework leverages inference decoding technology to increase single-user generation speed of large models by 60% to 85%. The framework has been deployed on DeepSeek V4-Flash and V4-Pro. Third-party Qwen3 model testing shows that DSpark's acceptance token length is 30.9% higher than the previously most advanced Eagle3 framework. The PyTorch core maintainers have given high praise for the technical implementation.

The framework is compatible with any model architecture, including Qwen, Gemma, Llama, and Mistral. This follows DeepSeek's consistent pattern since V3 and R1: open-source the infrastructure, reduce the cost of inference, and let the ecosystem thrive on its own. The U.S. chip export control to China attempts to slow down AI development in China. DSpark's response is to make each chip do more. In the same week, BIS warned that AI capital expenditure has exceeded $1 trillion (reported yesterday), and DeepSeek is using open-source tools to lower the barrier for this expenditure.

(Source: VentureBeat / SCMP / MarkTechPost / Pandaily)

4｜Strategy Officially Opens Bitcoin Sale Mechanism, "Never Selling" Narrative Loosens

Strategy has announced the "Digital Asset Treasury Framework," which includes a $1.25 billion Bitcoin monetization plan and $2 billion authorization for share repurchases of preferred and common stock. This framework allows the sale of Bitcoin for USD reserves, preferred stock dividends, interest payments, and buybacks. This is the first time Strategy has established a systematic Bitcoin sale mechanism. Following the announcement, MSTR surged nearly 7% in pre-market trading.

Yesterday's report indicated Strategy's unrealized losses on paper of around $13 billion, with Saylor hinting at more buying. Today, the company's response is not "more buying," but to formally open the sales channel. If Bitcoin is "digital gold," gold holders do not liquidate gold to pay dividends. The initial promise to investors of STRC preferred stock was "you have no downside risk," and now they are reevaluating this promise. (Continuation of yesterday's report)

(Source: CoinDesk / Fortune / BeInCrypto)

5｜Heatwave Exposes Physical Limits of AI Infrastructure

The U.S. Department of Energy has granted emergency authority to Virginia grid operator PJM to impose mandatory power cuts on data centers during high temperatures. The Northern Virginia corridor is home to the world's densest cluster of data centers, and PJM expects a shortfall of 5800 megawatts in backup power during heatwaves. Power cuts are the last resort before rolling blackouts. This is not a hypothetical scenario; the authorization has already taken effect as summer has just begun.

Across the Atlantic, France recorded its highest temperature since 1947 last week at 44°C. EDF was forced to shut down three nuclear reactor units as river water temperatures exceeded legal discharge limits, reducing output by 4 gigawatts, accounting for 6% of France's nuclear capacity. Macron previously called France's nuclear power the "heart of AI ambition." That heart is now slowing down in the heat. The AI industry's annual investment in computing infrastructure has already exceeded $1 trillion (BIS data, reported yesterday), but the grid has a flaw that a software update can't fix: the weather.

(Source: Fortune / Utility Dive / Euronews / DOE)

Also Worth Knowing ↓

Rocket Lab acquires satellite communication company Iridium in an $8 billion all-stock deal. This acquisition allows Rocket Lab to have a complete satellite constellation network in its space race against SpaceX and Amazon. (Source: TechCrunch)

The MiCA deadline on July 1 has arrived, and around 10 million EU crypto users may need to switch platforms. Exchanges not granted MiCA licenses will be forced to exit the EU market, marking the enforcement phase of European crypto regulation experimentation. (Source: CoinDesk)

Ford discovered three years ago that AI cannot replace human expertise and has rehired 350 retired engineers to correct AI tools. This group of engineers, internally referred to as "Greybeards," is responsible for training junior staff and reprogramming underperforming automated systems. (Source: Fortune)

The Supreme Court ruled that geofence warrants require privacy protections, limiting law enforcement's ability to conduct mass surveillance using Google location data. Privacy advocates see this as a significant victory, although the ruling did not completely ban this tool. (Source: TechCrunch / Washington Post)