President Trump's repeated threats to invoke the Insurrection Act amid protests against aggressive ICE deportation operations in cities like Minneapolis and rising urban crime in Chicago and Los Angeles have heightened market scrutiny, though no activation has occurred as of early April 2026. Early January rhetoric led to brief pushes for National Guard deployments that were later dropped, while Senate Bill S.2070 seeks to impose limits on the 1807 law's broad presidential authority to federalize troops for suppressing domestic insurrection or unrest. Ongoing civil disturbances, including recent National Guard activations like the 260th for potential disturbances, and midterm election pressures could catalyze action, but historical rarity—last major use in 1992—tempers expectations absent state requests or extreme escalation. Traders weigh waiver of Posse Comitatus restrictions against legislative pushback and judicial oversight.