Which case addressed the balance of power between federal and state government in commerce regulation?

The case that directly addressed the balance of power between federal and state government in commerce regulation is Gibbons vs. Ogden. This landmark Supreme Court decision from 1824 clarified the scope of Congress's legislative power under the Commerce Clause of the Constitution. It established that the federal government had the authority to regulate interstate commerce, which was interpreted broadly to include navigation and trade across state lines.

The specific issue revolved around a conflict between a New York state-granted monopoly on steamboat operation and a federal licensing measure. The Supreme Court ruled that the federal government had supremacy in regulating interstate commerce, thereby limiting the powers of the states in this area. This ruling was significant as it reinforced the federal government's role in regulating the economy and established a precedent for federal authority over interstate commerce, helping to define the balance of power between the federal and state governments.

Understanding this case is crucial for grasping how the mechanisms of federalism work in the United States, particularly regarding economic regulation.