The Crypto Industry Celebrates Supreme Court Ruling
The crypto industry celebrated a Supreme Court ruling that abolished “Chevron deference,” giving federal courts more say in determining the scope of administrative agency authority.
Landmark Ruling Impacts Crypto Firms
The 6-3 ruling overturned a 40-year-old Court doctrine that allowed administrative agencies under the President to interpret vague laws. This victory resonated with conservatives skeptical of the Executive Branch’s role in regulating sensitive areas like health and the environment.
- The ruling could embolden embattled crypto firms facing SEC lawsuits.
- Legal implications may be exaggerated, according to Duke Law School’s Lee Reiners.
SEC’s Authority in Regulating Crypto
Reiners highlighted the ongoing questions regarding the SEC’s authority in regulating crypto, specifically regarding their classification as securities.
- The core issue revolves around whether crypto should be considered a security.
- The uncertainty around securities versus commodities in SEC lawsuits persists.
Statutory Limits and Court Scrutiny
Crypto firms have challenged the SEC’s authority in regulating crypto within the framework of securities and the Howey Test.
- Coinbase argued against SEC overreach in court.
- The Major Questions Doctrine and the SEC’s authority were subjects of legal disputes.
Industry Response and Implications
Coinbase acknowledged the Supreme Court’s ruling as a check on agencies like the SEC, signaling potential scrutiny of regulatory overreach in crypto.
- CEO of the Crypto Council for Innovation highlighted the implications for the crypto industry.
- Courts’ ability to intervene raises questions about the role and power of regulators.
Hot Take
Crypto firms may find leverage in legal challenges against the SEC following the Supreme Court ruling on administrative agency authority. The ruling emphasizes the need for clarity in regulatory oversight within the crypto space.
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