Exploring the Ripple Effect: Contemplating the Cryptocurrency Market’s Reception of a Transformative Development. Insights Revealed by an Analytical Firm
The recent decision made by the US Supreme Court, which was perceived unfavorably by the SEC, has sparked discourse within the cryptocurrency sphere.
By Mete Demiralp
Date: 02.07.2024 – Time: 06:03
Last Updated: 6 seconds ago
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A fresh perspective from investment bank TD Cowen suggests that the Supreme Court’s nullification of the longstanding Chevron doctrine could complicate the legislative landscape surrounding the regulation of the cryptocurrency industry and stablecoins.
In a landmark 6-3 ruling, the Supreme Court overturned a four-decade-old precedent that granted federal agencies the autonomy to construe laws at their discretion. This decision has implications for the crypto sector, hinting at a necessity for entities like the Securities and Exchange Commission (SEC) to exercise caution in their future actions.
Jaret Seiberg, the head of TD Cowen’s Washington Research Group, shared his observations on the matter, stating:
“The prevailing sentiment post the Supreme Court’s intervention is that the ruling is favorable for the crypto industry. While we concur in part, foreseeing assistance in future crypto-centric tussles against SEC regulations and norms, it’s important to note that this ruling does not retroactively alter previous verdicts or reopen closed cases for reassessment.”
Seiberg shed light on a broader concern: the implications of this decision on policymakers aiming to enact regulations governing the industry and stablecoins. In May, the US House of Representatives advanced the Financial Innovation and Technology for the 21st Century Act (FIT21), spearheaded by Republicans and endorsed by some Democrats. Additionally, legislators in both chambers are deliberating bills aimed at regulating stablecoins.
Elucidating further, Seiberg stated that the Chevron ruling “eliminates a common bipartisan negotiation strategy: leaving language open-ended to delegate final decision-making to regulators.” This development presents political advantages, enabling lawmakers to critique regulators for failing to align with legislative intent, even if Congress hasn’t explicitly articulated the course of action.
Seiberg also emphasized the necessity for lawmakers to delve into specifics regarding the circumstances under which a token transitions from a security to a commodity, among other pertinent aspects: “Neither party can comfortably rely on regulators now, as judicial review can subject these decisions to reevaluation.”
*This is not financial advice.
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