The U.S. Supreme Court’s recent overruling of Chevron’s doctrine, a 40-year-old legal principle, has marked a pivotal moment as it could potentially affect the federal regulators’ authority, including their influence over workplace conditions, drug safety, and emerging areas like cryptocurrency.
Potential Implications for the Crypto Industry
After the Supreme Court overturned Chevron’s doctrine, the crypto industry has started anticipating significant benefits for the sector.
Pro-XRP holders’ attorney, John Deaton, has emphasized the importance of this legal battle for crypto, foreseeing a potential reduction in regulatory powers. The move could provide crypto firms, like Ripple and Coinbase, with added leverage to challenge regulatory overreach by bodies like the SEC.
Khurram Dara of Bain Capital Crypto says that reversing the Chevron doctrine won’t solve all regulatory challenges but is certainly a leap forward. The court decision would possibly prompt regulators into putting forth clearer models of emerging technologies such as cryptos, shifting away from regulation by enforcement.
During arguments before the Supreme Court, references to cryptocurrency were made in the context of Chevron-related problems. The court highlighted a regulatory head claiming authority over 21st-century issues using statutes from the 1930s, showcasing the need for a nuanced approach to crypto regulation.
If the Chevron doctrine is overturned, legal scholars anticipate a seismic shift in regulatory dynamics. The decision could render longstanding regulations vulnerable, allowing industries, including crypto, to operate with greater clarity. Moreover, the court’s move may prompt regulators to await congressional regulations rather than relying on ambiguous legal doctrines.
The Supreme Court’s review of the Chevron doctrine holds significant importance for various industries, especially the crypto-industry which is anticipated to benefit from reduced regulatory constraints.