The U.S. Supreme Court’s recent decision to overturn the Chevron Doctrine has disrupted the push for legislation to regulate the cryptocurrency industry and stablecoins. Investment bank TD Cowen said on Monday.
Supreme Court I voted A 6-3 vote on Friday could overturn a 40-year-old court decision that leaves it to federal agencies to interpret the law as they see fit. Cryptocurrency experts said the decision provides an advantage for the cryptocurrency industry and means agencies like the Securities and Exchange Commission (SEC) will have to proceed with caution going forward.
“The conventional wisdom since the Supreme Court took action is that this decision is beneficial to the cryptocurrency sector. We agree in part that this will help future cryptocurrencies challenge SEC rules and enforcement. . However, it cannot change past rulings or review previous decisions.” TD Cowen Washington Research Group, led by Jaret Seiberg, wrote in the note.
The bigger question, Seiberg said, is what this decision means for the industry and lawmakers seeking to enact legislation to regulate stablecoins. t in mayHe is a member of the US House of Representatives passed The Republican-led Financial Innovation and Technology for the 21st Century Act (FIT21) won support from Democrats. Meanwhile, members of the House of Representatives and the Senate also worry About the bill regulating stablecoins.
“(The Chevron decision) eliminates a very common tactic of finding a bipartisan compromise that leaves the final decision up to the regulators,” Seiberg said. “That provides a political advantage because it allows lawmakers to later criticize regulators for not following Congress’s intent, even if Congress fails to clearly state what should happen.”
Lawmakers will be specific about when the tokens would transition from securities to commodities and other details, Seiberg said.
“We’re talking about details that you don’t typically see in legislation, such as what happens when a retail investor participates in a staking program on an exchange, or how do you enforce AML/BSA controls if tokens go through a mixer at some point and hide their origins,” Seberg said. “Now that the courts are likely to reconsider these decisions, neither side is going to feel comfortable making concessions to the regulators.”
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