The US is lagging behind in regulating the crypto industry is no longer a secret. Joe Biden’s unfriendly policy towards digital assets is holding back their development. However, a recent Supreme Court decision could shake things up by calling into question the authority of federal agencies. Indeed, this decision marks a turning point for the industry, redefining regulatory power and offering a new perspective for crypto businesses.
Supreme Court changes the game for crypto
While we wait for the return of pro-bitcoin (BTC) Donald Trump to the White House, things are changing. Indeed, the United States Supreme Court decision Loper Bright vs. Raimondo might just be the kick in the pants needed for revitalizing the crypto industry.
In declaring the end of Chevron deference, the Court redefined the distribution of powers between the judicial and executive branchestives of the American government.
This decision historic event ends nearly four decades during which the courts had to comply with interpretations of federal agencies in matters of ambiguous regulations.
” Chevron is cancelled “, the court declared on June 28, opening the door to more frequent legal challenges to the 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 authority as a crypto watchdog.
Joanna Wasick, an attorney at BakerHostetler, pointed out that Loper Bright's attorney, Paul Clement, had explicitly used crypto 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 well be a game-changer in cases like Coinbase vs. SEC.
According to Jim Lundy, a former senior counsel at the SEC, the Supreme Court made the right choice because Chevron deference had become too broad.
International Perspectives on Crypto Regulation
In Europe, where the MiCA (Markets in Crypto-Assets Regulation) regulatory framework was recently put in place, the Loper Bright decision is being watched with interest.
Annabelle Rau, a Germany-based lawyer, said the move could reduce regulatory barriers by limiting the interpretative powers of an SEC that is increasingly challenged by the CFTC, thereby spurring innovation in digital asset tokenization.
However, a positive regulatory framework also depends on theuniformity of rules interpreted by the courts.
MiCA, while not very favorable to stablecoins, aims to provide clear regulation, balancing innovation and supervision, an objective that the United States could now attempt to achieve with this new jurisprudence.
The Supreme Court’s decision opens up new and promising perspectives for the crypto industry, providing a unique opportunity to reassess and strengthen regulation. Crypto businesses can now look forward to a more stable and predictable framework, thus stimulating innovation and adoption of blockchain technologies.
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