Final answer:
In Gibbons v. Ogden, the Supreme Court ruled that the federal government had the authority to regulate interstate commerce, thus federal licensing laws for coastal navigation trumped state laws. This 1824 decision broadened the power of the national government and upheld the federal government's dominance over states in matters of commercial regulation.
Step-by-step explanation:
In the landmark Supreme Court case of Gibbons v. Ogden, decided in 1824, the central issue pertained to the scope of the federal government's power to regulate interstate commerce under the commerce clause of Article I, Section 8, of the U.S. Constitution. This pivotal case arose from a dispute between Aaron Ogden and Thomas Gibbons over the right to operate steamboats between New York and New Jersey. Ogden held a license granted by the state of New York, while Gibbons operated under a federal coasting license.
Chief Justice John Marshall delivered an opinion that substantially broadened the power of the federal government by establishing that the Federal Licensing Act of 1793, which regulated coastal commerce, superseded state laws. He asserted the federal government's authority to regulate all forms of commercial intercourse among states, thus federal law took precedence over the state-granted monopoly. The decision marked a significant step in defining the balance of power between the federal government and the states and played a crucial role in promoting economic development within the United States.