In
a
significant
move,
the
United
States
Supreme
Court
has
issued
a
ruling
that
limits
the
authority
of
federal
agencies,
including
the
Securities
and
Exchange
Commission
(SEC)
to
interpret
laws
deemed
“ambiguous”
through
the
rulemaking
process.
Given
this
development,
the
question
is:
is
this
ruling
a
victory
for
the
crypto
industry,
and
if
so,
how
does
it
benefit
the
sector?

Benefits
From
Supreme
Court
Ruling

The
6-3
decision
of
the
Supreme
Court

overruled

the
Chevron
deference,
a
1984
precedent
that
granted
agencies
discretion
in
interpreting
congressional
laws. 

Justice
John
Roberts

emphasized

the
importance
of
independent
judgment
by
courts
in
determining
whether
agencies
have
acted
within
their
statutory
authority.
The
ruling,
which
cites
the
Administrative
Procedures
Act
(APA),
rejects
the
notion
of
blanket
deference
to
agency
interpretations
solely
based
on
statutory
ambiguity.

 

Notably,
the
ruling
has
implications
for
ongoing
legal
battles
within
the
crypto
industry.
Ripple,
currently
facing
a
lawsuit
from
the
SEC,
stands
to
benefit
from
the
curtailed
agency
rulemaking
authority.
Judge
Torres,
presiding
over
the
Ripple
case,
will
now
have
greater
independence
in
interpreting
the
relevant
laws. 

Similarly,
major
industry
players
like
Coinbase
and
Uniswap
Labs,
who
recently
received
Wells
Notices
from
the
SEC,
may
find
themselves
in
a
more
favorable
position
as
the
SEC’s
case
relies
heavily
on
the
interpretation
of
the
Howey
Test.

Industry
Experts
Question
SEC’s
Crypto
Cases

Market
expert
Scott
Melker

highlights

the
potential
impact
of
the
Supreme
Court
ruling
on
the
SEC’s
case
against
Coinbase.
Melker
argues
that
the
SEC’s
case,
largely
based
on
the
application
of
the
Howey
Test
to
crypto
assets,
could
be
rendered
irrelevant
in
light
of
the
ruling. 

If
the
SEC
cannot
claim
that
crypto
assets
are
securities
under
the
Howey
test,
Melker
said,
it
raises
questions
about
the
foundation
of
its
case
against
Coinbase.

 

Ben
Lilly
of
Jarvis
Labs
also

contends

that
the
securities
law
and
statutes
pertaining
to
cryptocurrencies
are
ambiguous.
This
ambiguity
further
highlights
the
importance
of
independent
judicial
interpretation,
as
emphasized
by
the
Supreme
Court
ruling. 

Featured
image
from
DALL-E,
chart
from
TradingView.com 

Go to Source
Author: Ronaldo Marquez

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