The cryptocurrency industry praises the Supreme Court’s decision in the Chevron case

The crypto community is celebrating the U.S. Supreme Court’s decision to overturn the Chevron Doctrine, a 40-year-old principle that subjects the law to interpretation by federal agencies.

Cryptocurrency stakeholders noted that the Supreme Court’s 6-3 decision ended a precedent that unfairly empowered unelected agencies like the Securities and Exchange Commission (SEC). Over the years, the SEC has often been criticized for its strict interpretation of the law that targets the emerging industry.

Mike Cagney, co-founder and CEO of Figure Markets, highlighted the significance of the ruling for the cryptocurrency sector, saying the decision shifts enforcement from regulators to the courts.

“Previously, when there was no clear legislation, the courts had to side with the regulator (e.g. SEC). Thanks to this decision, the courts decide autonomously. “It’s big for our space,” Cagney added.

Austin Campbell, an associate professor at Columbia Business School, said the ruling forces the SEC to follow clear written rules. He noted that “this decision will have some unintended consequences and will likely shift the burden back to Congress, but in the long run it is a huge positive outcome for legal and judicial certainty in our industry.”

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Similarly, economist Timothy Peterson suggested that the decision would prevent the SEC from acting as an “automated subject matter expert” on cryptocurrencies.

“The (Supreme Court’s) overturning of Chevron’s deference limits the SEC’s unilateral interpretive authority over Bitcoin. All those “staff opinions” that said “this is what security is”? Lost. Courts must now examine the SEC’s anti-Bitcoin stance, which could potentially lead to fairer regulations and a more balanced legal environment,” Peterson noted.

Meanwhile, FOX Business reporter Eleanor Terrett explained that the ruling does not completely eliminate the SEC’s ability to enforce the law. However, she noted that it raises questions about whether Congress has authorized the SEC to regulate cryptocurrencies as securities.

“The SEC’s claim that it has full jurisdiction over cryptocurrencies has less meaning today than it did yesterday because the question becomes whether Congress has granted the SEC the authority to regulate cryptocurrencies based on whether or not they are securities,” Terrett said.

Republican legislator Warren Davidson echoed Terrett’s view. He noted that “the decision does not prevent Congress from delegating lawmaking authority. (However) it makes it impossible to legislate where no delegation has been made.”

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Despite the broad support, President Joe Biden’s administration and key Democrats, including Elizabeth Warren, have criticized the ruling. Warren, a noted crypto-skeptic, called it a far-right power grab for the wealthy and well-connected.

“Corporate interests want extremist judges to write the rules at the expense of consumers, workers, safety and the environment,” she said.