Regulation
Supreme Court Redefines Cryptocurrency Regulation
9.42am ▪ 4 min read ▪ by Mikaia A.
The United States’ delay in regulating the cryptocurrency industry is no longer a secret. Joe Biden’s unfavorable policy towards digital assets hinders its development. However, a recent decision by the Supreme Court could reverse this state of affairs, challenging the authority of federal agencies. In fact, this decision marks a turning point for the industry, redefining regulatory power and offering a new perspective for cryptocurrency companies.
Supreme Court Changes the Rules of the Game for Cryptocurrencies
While I was waiting for the The Return of Pro-Bitcoin (BTC) Donald Trump at the White House, things are evolving. In fact, the Supreme Court decision Loper Bright v. Raimondo It could be the kick you need revitalize the cryptocurrency industry.
By declaring the end of Chevron deference, the Court redefined the distribution of powers between the judiciary and executive branches of the United States government.
This decision marks the end of nearly four decades during which the courts have had to defer to the interpretations of federal agencies concerning ambiguous regulations.
“The Chevron decision is reversed,” the Court declared on June 28, opening the door to more frequent judicial challenges to these agencies’ decisions.
SEC and Web3: A Contested Authority
For the world of Web3 and blockchain, this decision is seen as a real upheavalThe Loper Bright case highlighted the SEC’s tendency to overstep its bounds as a cryptocurrency regulator.
Joanna Wasick, an attorney for BakerHostetler, pointed out that Loper Bright’s attorney, Paul Clement, had explicitly he used cryptography as an example to show how the SEC exceeded its authority.
The Court’s decision could encourage more companies to challenge SEC decisions and could change the course of cases like Coinbase v. SEC.
According to Jim Lundy, former senior counsel for the SEC, the Supreme Court made the right choice, because Chevron’s deference had become too broad.
International perspectives on cryptocurrency regulation
In Europe, where the Markets in Crypto-Assets Regulation (MiCA) regulatory framework was recently established, the Loper Bright decision is being closely watched.
Annabelle Rau, a German-based lawyer, explained that this decision could reduce regulatory barriers by limiting the interpretive powers of an SEC increasingly challenged by the CFTC, thus spurring innovation in the tokenization of digital assets.
However, a positive regulatory framework also depends on the uniformity of rules interpreted by the courts.
MiCA, although unfavorable to stablecoinsaims to provide clear regulation, balancing innovation and oversight, a goal that the United States may now seek to achieve with this new case law.
The Supreme Court’s decision opens up new and promising prospects for the cryptocurrency industry, providing a unique opportunity to reevaluate and Strengthen regulationCrypto businesses can now look forward to a more stable and predictable framework, thus spurring innovation and adoption of blockchain technologies.
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Mikaia A.
The blockchain and crypto revolution is underway! And the day the impacts are felt on the most vulnerable economy in this world, against all hope, I will say I was there for someone
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.