Supreme Court Redefines Crypto Regulation

The United States’ delay in regulating the crypto industry is no longer a secret. The unfriendly policy for digital assets adopted by Joe Biden hinders their development. However, a recent Supreme Court decision may shake this state of affairs by calling into question the authority of federal agencies. Indeed, this decision is a turning point for the industry, redefines regulatory power and offers a new perspective for crypto businesses.

The Supreme Court is a game changer for crypto

As the return of pro-bitcoin (BTC) Donald Trump to the White House is awaited, things are changing. Indeed, the Loper Bright vs. Raimondo from the United States Supreme Court may be just the kick in the arm needed to revive the crypto industry.

In declaring the end of Chevron deference, the Court redefined the division of powers between the judicial and executive branches of the US government.

This historic decision ends nearly four decades in which courts have had to defer to federal agencies’ interpretations of ambiguous regulations.

“Chevron is void,” the court declared on June 28, opening the door to more frequent legal challenges to these agencies’ decisions.

SEC and Web3: A Contested Authority

For the world of Web3 and blockchain, this decision is considered a real revolution. The Loper Bright case highlighted the SEC’s tendency to overstep its powers as a crypto watchdog.

Joanna Wasick, an attorney at BakerHostetler, pointed out that Loper Bright attorney Paul Clement explicitly used crypto as an example to show how the SEC was overstepping its authority.

The court’s decision could encourage more companies to challenge the SEC’s decisions and could be a game-changer in cases like Coinbase vs. DRY.

According to Jim Lundy, former senior counsel at the SEC, the Supreme Court did the right thing because Chevron deference had become too broad.

International Perspectives on Cryptoregulation

In Europe, where the MiCA (Markets in Crypto-Asset Regulation) regulatory framework was recently implemented, the Loper Bright decision is being observed with interest.

Annabelle Rau, a Germany-based lawyer, explained that the move could reduce regulatory barriers by limiting the interpretive powers of an SEC that are increasingly being challenged by the CFTC, thereby spurring innovation in the tokenization of digital assets.

However, a positive regulatory framework also depends on the uniformity of the rules interpreted by the courts.

The MiCA, while not very favorable to stablecoins, aims to provide clear regulation, balancing innovation and oversight, a goal that the United States can now try to achieve with this new case law.

The Supreme Court’s decision opens up new and promising prospects for the crypto industry, providing a unique opportunity to rethink and strengthen regulation. Crypto businesses can now look forward to a more stable and predictable framework, thus promoting innovation and adoption of blockchain technologies.

Micah A.

The blockchain and crypto revolution is underway! And the day when the impact on the most vulnerable economy in this world will be felt, against all hope, I will say that I had something to do with it

DISCLAIMER

The views, thoughts and opinions expressed in this article belong solely to the author and should not be taken as investment advice. Do your own research before making any investment decisions.