As Commissioner and later Chairman of the FEC, Smith remained controversial, particularly in 2004, when as Chairman he bucked the Republican Party and refused to support new regulations of "527 groups," organizations, largely unregulated by campaign finance laws, that were generally believed to favor Democratic Presidential candidate John Kerry. Smith's tenure was otherwise marked by efforts to reform the FEC's enforcement proceedings to provide greater due process rights for respondents, and a staunch stand against expansion of the law into uncharted areas. Smith also supported the creation of an Administrative Fines program and an Alternative Dispute Resolution Office at the FEC. As Commissioner, he maintained an active speaking schedule and continued to criticize campaign finance laws. He resigned from the FEC in August 2005 to return to teaching, writing in his resignation letter to President Bush, "Political activity is more heavily regulated than at any time in our nation's history."