In the United States v. Pink (1941), the U.S. Supreme Court ruled in favor of the federal government, asserting its supremacy over state law in matters related to foreign affairs and international recognition. The case arose from a dispute over assets held by First Russian Insurance Company, which were seized during the Russian Revolution and later claimed by both New York State Superintendent of Insurance Arthur W. Pink and the Soviet Union's government after diplomatic recognition by President Roosevelt’s administration. The court decided that when it comes to recognizing foreign governments or dealing with their claims on property within US borders, these are powers vested solely in the executive branch of federal government under constitutionally granted authority for conducting foreign policy; thus overriding any conflicting state laws or policies.

In the dissenting opinion for United States v. Pink, Justice Stone argued that the majority's decision was a departure from established principles of international law and constitutional law. He contended that it is not within the power of any branch of government to determine unilaterally how rights and obligations under foreign laws are to be recognized in domestic courts. Rather, such determinations should be made through treaty or legislation, which require consent from multiple branches of government. By allowing an executive agreement to dictate how New York state courts recognize Russian decrees, he believed that the Court had overstepped its bounds by infringing on states' rights and undermining separation of powers principles.