A state challenges a federal law that establishes a national agency responsible for regulating digital currencies. The state argues that Congress lacks the authority to create such an agency under its enumerated powers. Which of the following best supports Congress's authority to establish the national digital currency regulatory agency?
The Establishment Clause limits Congress's ability to create such an agency.
The Tenth Amendment reserves such regulatory powers to the states.
Congress can establish the agency under the Necessary and Proper Clause to carry out its commerce power.
Digital currency regulation falls outside Congress's enumerated powers.
Congress can rely on the Necessary and Proper Clause to establish the agency, as it enables Congress to create institutions necessary to execute its enumerated powers, such as regulating commerce. The other options either incorrectly limit Congress's authority or misinterpret constitutional provisions. Specifically, digital currency regulation falls within the commerce power, the Tenth Amendment does not reserve these regulatory powers exclusively to the states in this context, and the Establishment Clause is unrelated to the creation of regulatory agencies for commerce.
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What is the Necessary and Proper Clause?
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How does the commerce power relate to regulating digital currencies?