Regulation
Why Crypto Is Shortsighted in Celebrating the Seismic Supreme Court Ruling Chevron – DL News
- The Supreme Court’s decision to overturn long-standing precedent against Chevron has been welcomed by cryptocurrency industry leaders.
- But the industry shouldn’t celebrate rulings that harm consumers, Jo writes.
Joanna Wright is the regulatory correspondent for DL News. The views expressed are her own. A version of this story appeared in the July 1 edition of The guide news bulletin.
Here’s a Controversial View for You: Cryptocurrency Is Shortsighted in Celebrating the Supreme Court important decision in a case that challenged the “Chevron Doctrine” that gave regulatory agencies the power to resolve disputes.
The industry talks a lot about financial inclusion, but in reality it praises a decision that harms Americans.
Before explaining why, let’s recap:
- The Supreme Court on Friday decided 6-3 to overturn a guideline known as “Chevron deference.” The case two operators of the herring fishing fleet involved in a squabble with their regulator.
- The Chevron Doctrine holds that where the law is vague, courts should defer to the understanding of regulators, because they know their territory best.
- Scotus’ decision — as I reported in January — will erode the power of regulators to intervene where the law is unclear.
Why are cryptocurrencies celebrating?
Well, the industry wants any weapon that can take down the mighty Securities and Exchange Commission.
Fair enough.
The market watchdog, led by Chairman Gary Gensler, has undertaken a crackdown against the industry through the courts.
Far-reaching consequences
But Chevron’s reversal has much broader implications.
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For three decades, Chevron has protected Americans from corporate selfishness.
It is the wall that corporate giants crashed into when they tried to erode it. job security, environmental protections, food safety practices and more.
That’s why conservatives and big business have long wanted to get rid of it.
THE conservative majority The Supreme Court doesn’t care about small herring fleets; those cases were a convenient substitute.
It is significant, for example, that the court agreed to hear only the parts of the case involving Chevron.
It is also significant that the legal teams of the fishing fleets, apparently underdogs, were founded by petrochemical billionaire Charles Koch.
If you still need proof that the U.S. Supreme Court is closer than ever to its corporate friends, just look at a separate ruling from last week.
The court on Wednesday actually legalized The Types of Gifts from Billionaire Judges they were accused of accepting.
Libertarians argue that overturning the Chevron law means that uncontrolled agencies can no longer regulate at will.
Don’t get me wrong: the administrative state needs checks and balances.
But Chevron has never been a dull tool in the hands of regulators: the views of energy giant Chevron, for example, prevailed precisely in the case of 1984 from which the doctrine takes its name.
Legislating from the bench
There is nothing libertarian about what legal experts say will result from the overthrow of the doctrine.
THE consequences include by prolonging trials and giving legislative power to unelected judges and giving corporations the ability to seek out biased judges.
Tearing it up will also allow non-expert judges to rule on issues they know nothing about.
So the Supreme Court’s decision is bad for ordinary Americans.
This should worry cryptocurrency firms that market themselves to retail investors.
Bitcoin trading cannot save a population whose access to clean water and air, safe working environments and non-toxic food is being drastically reduced.
Crypto didn’t need Chevron to be upended – it’ll get whatever it wants anyway.
Gensler will soon be gone, and Congress is starting to warm to the industry.
The cryptocurrency industry’s celebration of policies that harm American consumers reveals where the industry’s allegiance now lies: firmly with the establishment.
Contact joanna@dlnews.com.