What principle did the Supreme Court establish in Gibbons vs. Ogden?

The principle established by the Supreme Court in Gibbons v. Ogden is that federal law is supreme over state law, particularly in matters of interstate commerce. This landmark case, decided in 1824, involved a dispute between rival steamboat operators on the Hudson River. One operator held a license from the state of New York, while the other operated under a federal license. The Court, led by Chief Justice John Marshall, ruled that the federal government had the exclusive power to regulate interstate commerce.

This decision effectively reinforced the notion that the Constitution grants Congress the authority to regulate commerce that crosses state lines, thereby limiting the power of individual states to enact conflicting legislation. The ruling set a crucial precedent for future interpretations of federal powers, ensuring that federal regulations take precedence over state laws when they conflict, especially in areas that affect multiple states and the economy as a whole.