The majority of the judges hearing the two cases on Wednesday were appointed by Democratic presidents, a fact that has the potential to tip the balance in favor of the government.
Too Much Power?
At the crux of the CFPB case is whether the director wields too much power without accountability to the president, in violation of the Constitution's separation of powers provision.
The case was brought by PHH Corporation, a mortgage company that was sued by the CFPB in 2014 with allegations of illegal kickbacks.
The company won a victory in October 2016, when a three-judge panel threw out the CFPB's $109 million penalty against PHH Corp on the grounds the bureau's structure was unconstitutional.
The CFPB appealed, and its own attorneys will represent the bureau in Wednesday's arguments. With the election of Trump in November, the White House has since switched sides and now supports the CFPB's opponent.
It is unclear what the Trump administration will do if the CFPB prevails in its appeal.
Fate Of SEC Judges
The SEC was given greater powers under the 2010 Dodd-Frank Wall Street reform law to seek penalties against Wall Street defendants in its own administrative court.
But the SEC has faced mounting challenges to the constitutionality of how it appoints in-house judges.