Regulation
Why Cryptocurrency Is Being Short-Sighted As It Celebrates Supreme Court’s Seismic Chevron Ruling – DL News
- The Supreme Court’s decision to overturn a long-standing precedent for deference to Chevron is being welcomed by crypto executives.
- But the industry should not celebrate decisions that harm consumers, Jo writes.
Joanna Wright is DL News’ regulatory correspondent. The opinions expressed are her own. A version of this article appeared in the July 1 edition of The orientation bulletin.
Here’s a controversial view for you: Crypto is shortsighted in celebrating the Supreme Court decision. important decision in a case that challenged the “Chevron doctrine” that gave regulatory agencies the power to settle disputes.
The industry talks a lot about financial inclusion, yet it welcomes a decision that harms Americans.
Before explaining why, let’s recap:
- The Supreme Court ruled 6-3 Friday to strike down a directive known as “Chevron deference.” involved two herring fishing fleet operators in conflict with their regulator.
- The Chevron doctrine states that when the law is vague, courts should defer to regulators’ understanding of it, because they know their own terrain best.
- The Scotus decision — as I reported Back in January — will reduce the power of regulators to intervene where the law is unclear.
Why is crypto celebrating?
Well, the industry wants any weapon that can bring down the mighty Securities and Exchange Commission.
Fair enough.
The market watchdog, under the chairmanship of Gary Gensler, led 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 been protecting Americans from corporate selfishness.
This is the wall that corporate behemoths have crashed into trying to erode it. workplace safety, environmental protections, food safety practices and more.
This is why conservatives and big business have long wanted to get rid of it.
THE mostly conservative The Supreme Court does not care about small herring fleets: these cases were a convenient indicator.
It is telling, for example, that the court agreed to hear only the Chevron parts of the case.
It is also telling that the legal teams of the fishing fleets – those apparent outsiders – were founded by Petrochemical billionaire Charles Koch.
If you need further proof that the highest court in the United States is closer than ever to its corporate cronies, you need only look at a separate decision issued last week.
On Wednesday, the court actually legalized The types of gifts given by billionaire judges were accused of accepting.
Libertarians argue that the Chevron reversal means that uncontrollable agencies can no longer regulate as they please.
Make no mistake: the administrative state needs checks and balances.
But Chevron has never been a blunt instrument in the hands of regulators – the opinions of energy giant Chevron, for example, prevailed in the very 1984 case which gives its name to the doctrine.
Legislating from the bench
There is nothing libertarian in what legal experts say an overthrow of this doctrine would entail.
THE The consequences include endless trials, and giving unelected judges legislative power and businesses the ability to shop around for biased judges.
Tearing it up would 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 companies that market themselves as empowering retail investors.
Bitcoin trading cannot save a population whose access to clean water and air, safe working environments, and non-toxic food is shrinking.
Crypto didn’t need Chevron to be toppled – he’ll get whatever he wants anyway.
Gensler is leaving soon, and Congress is starting to take a closer look at the industry.
Cryptocurrencies’ celebration of policies that harm American consumers reveals where the industry’s allegiances now lie: firmly on the side of the establishment.
Approach joanna@dlnews.com.