What was the significance of Gibbons vs. Ogden in relation to interstate commerce?

The significance of Gibbons vs. Ogden lies in its establishment of federal regulation over interstate commerce, which greatly influenced the balance of power between the federal government and the states. This landmark Supreme Court case, decided in 1824, clarified that the Constitution grants Congress the authority to regulate all aspects of interstate commerce, not just the transportation of goods across state lines.

The ruling arose from a dispute between two steamboat operators, one of whom had a federal license to operate his vessel and the other had a state-granted monopoly in New York. The Supreme Court found that the federal government has exclusive power to regulate interstate commerce, which includes navigation and transportation. By doing so, the ruling reinforced the supremacy of federal law over state law in matters pertaining to commerce that crosses state boundaries. This decision played a crucial role in shaping the economic landscape of the United States and has been cited in numerous subsequent cases involving commerce and federal powers.

This case did not limit state powers; rather, it set a precedent that federal authority over commerce takes precedence, effectively curtailing state control when it conflicts with federal regulations.