- Overturning the Chevron doctrine would put more burden on Congress to directly tackle policy issues and give judges more authority to define the limit of agency powers.
- The SEC vs Ripple ruling is expected to be released anytime since the judge has already been briefed by both parties.
In a bid to ensure the United States dollar remains the global reserve currency, a faction of Congressional members are convinced the SEC and CFTC powers to regulate the cryptocurrency and blockchain market should be provided in a clear statute.
The rising demand for digital assets has already pushed the European market to approve the Markets in Crypto Assets (MiCA) regulatory framework. The Hong Kong regulators are also about to introduce crypto-friendly policies to attract Chinese financial institutions seeking to invest in Web3 businesses.
U.S. Supreme Court on Chevron Doctrine
In a bid to provide a clear regulatory framework, an appeal by four New Jersey fishing companies asks the court to overturn the watershed 1984 Chevron v. Natural Resources Defense Council ruling. Moreover, the United States Supreme Court has not relied on the Chevron doctrine since 2016. Notably, the Chevron doctrine states that courts should defer to administrative agencies when they offer a reasonable interpretation of an unclear statute.
Already, the United States SEC and CFTC are applying decades-old regulatory policies on 21st and global-scale crypto and blockchain technology. While other global jurisdictions broadly accept cryptocurrency and blockchain technology to bolster their economies, analysts have indicated that the United States is lagging on the matter.
Notably, overturning the Chevron doctrine would put more burden on Congress to directly tackle policy issues and give judges more authority to define the limit of agency powers.
“Chevron has become the crucial bulwark to protect executive branch agencies from doing the job that Congress assigned them without improper interference from courts,” said James Goodwin, a senior policy analyst at the Center for Progressive Reform.
You’ve basically just pulled the rug out from under Congress for the last 40 years.
Cary Coglianese, director of the Penn Program on Regulation at the University of Pennsylvania’s law school, said a decision overruling Chevron could affect the ability of financial-regulatory agencies to address cryptocurrency and the impact of artificial intelligence.
“Any agency across the federal government could potentially find itself limited in the kind of flexibility it has to respond to new problems and new needs for agency action,” Coglianese said.
If you look at the financial regulatory agencies, a lot of them are still exercising authority from statutes that were adopted decades ago. Even the Dodd-Frank Act is now nearly a decade and a half old.
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What Next for Ripple and XRP
Ripple was dragged into a lawsuit by the SEC for ostensibly selling unregistered securities through XRP to the secondary market. While other global markets including Japan and South Korea have indicated that XRP is not a security, the United States is yet to define whether digital assets are securities or should be traded as commodities.
he US Supreme Court’s decision on the Chevron doctrine could give a lot of hope to the crypto market in the United States, that is fleeing to other global markets.
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