Supreme Court’s War on Regulation Will Lead to Economic Collapse

when the effects of public policies change significantly due to changes in the surrounding economic or social context and then, despite the recognition of alternativesdecision makers do not update their policies due to pressure from strong minority interests or political actors.

Loper Light is, among other things, very pro-drift. The further the economy — and indeed all of modern life — moves away from the regulatory mechanisms that govern it, the more the Supreme Court likes to shrug and say, “Our hands are tied.” But in the case of Drifter does the opposite, giving judges the power to decide whether new regulations will apply or not. Now it’s the regulators who have their hands tied.

The biggest banking regulation currently under consideration is rule proposed jointly by the Fed, FDIC and Comptroller to bring U.S. banks into line with an international agreement reached after the financial crisis. The agreement, known as Basel IIIrequired banks to build larger capital reserves against recessions, take on less debt and respond more quickly to market conditions. The nation’s largest banks would have to increase their capital reserves by 19 percent. The banking industry strongly opposes the new requirements because they would cut profits, and it has managed to get Federal Reserve Chairman Jerome Powell to promise “broad and significant” changes before the rule is issued in final form. Still, the banking lobby will almost certainly challenge the final rule in court.

How will it be? Loper Light affect such disputes? The Venable Law Firm is advising its banking clients that it will strengthen legal challenges based on the Administrative Procedures Act of 1946 (which Chevron has violated under Loper Light) and the “principal questions” and “non-delegation” doctrines, which also limit regulatory powers. Loper Light Venable said it would also strengthen banks’ legal ability to challenge anti-money laundering regulations and could help thwart the Securities and Exchange Commission’s regulation of cryptocurrencies.