In a groundbreaking 6-3 ruling, the U.S. Supreme Court overturned the 1984 Chevron decision, which mandated that federal judges defer to federal agencies’ “reasonable” interpretations of ambiguous laws enacted by Congress.
This ruling marks a significant shift in the balance of authority between the judiciary and federal agencies. Chief Justice John Roberts, writing for the majority, stressed the need for courts to independently assess whether agencies are acting within the bounds of the law. “Courts must exercise their independent judgment in determining whether an agency is operating within its lawful authority, as stipulated by the Administrative Procedures Act (APA),” Roberts emphasized. “Under the APA, courts are not obliged to defer to an agency’s interpretation of a statute merely because the statute is unclear.”
The decision elicited varied responses from different sectors. Ripple’s Chief Legal Officer, Stuart Alderoty, voiced strong support for the ruling, particularly in light of the Securities and Exchange Commission’s regulatory stance. “Gary Gensler views the SEC as a ‘police officer’ empowered to enforce its own interpretations at will,” Alderoty remarked. “By overturning Chevron today, the Supreme Court clarified that the opinions of eager bureaucrats do not warrant special deference and that their authority is circumscribed by Congress and the judiciary.”
Economist Timothy Peterson analyzed the decision’s impact on the cryptocurrency market, particularly Bitcoin. “This is a major victory for Bitcoin, more significant than any individual case or statute,” Peterson noted. “The Chevron doctrine previously positioned agencies as automatic experts in enforcement matters. Now, SCOTUS’s reversal of Chevron restricts the SEC’s unilateral interpretative power over Bitcoin. No longer can ‘staff opinions’ declaring ‘so-and-so’ a security go unchecked. Courts will now scrutinize the SEC’s anti-Bitcoin stance, potentially fostering more equitable regulations and a balanced legal environment.”
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