This is the case where the US Supreme Court made a big ruling that hurt the Bitcoin company the most. Because of this choice, the executive and law offices have different amounts of power. It will change how states read the law and follow it in a big way.
On June 28, the Supreme Court said that U.S. courts would no longer have to follow how the government interprets unclear laws. 1984, the Chevron USA Inc. vs. Natural Resources Defense Council case said something different. The court said, “Chevron is overruled,” with a clear 6–3 vote.
This decision affects business, health care, the environment, and technology, among other things. He talked about how broad the ruling was. Jim Lundy is a partner at Foley & Lardner and works on securities law and litigation. He was a senior regulation counsel at the U.S. Securities and Exchange Commission (SEC). “This ruling has impacts all across the administrative state,” he said.
The Supreme Court did the appropriate thing with this ruling because the Chevron deference had started to stretch too far for certain agencies.
A lawyer at Wiley Rein and an adjunct professor at the University of Virginia School of Law named Joshua Simmons said that the decision would have a long-term impact on people.
After a while, he said Loper Bright would make a big difference and be a “game changer” for the crypto and blockchain business. Because agencies don’t get as much favoritism as they used to, companies have a better chance of winning when they challenge government acts.
Joanna Wasick, a lawyer at BakerHostetler, discussed the oral arguments that were made in front of the Supreme Court. She said the result might give blockchain and crypto companies the courage to go to court and force Congress to pass full crypto reform laws.
Supreme Court Ruling’s Broader Implications and Tech Industry Reactions
Many cases against the government are still valid after the decision, like Coinbase vs. SEC in the U.S. Court of Appeals for the Third Circuit. In a recent letter, Uniswap Labs asked the SEC to drop its plan to control decentralized finance. They also cited Loper Bright and said that the changes that were being considered are no longer legal.
Loper Bright’s attorney, Paul Clement, pointed directly to crypto as an example of how the SEC [Securities and Exchange Commission] oversteps its authority. Obviously crypto was not an issue for the Supreme Court to decide in Loper Bright. But the same winning arguments made there may have similar sway when that day comes.
The pick could also affect other parts of the government. The state set up Custodia as a cryptocurrency bank and recently fought the Federal Reserve’s decision not to give it a Fed Master Account. Now that the Supreme Court has decided, this move may be used by more people. Like in Loper’s case, the Supreme Court has recently said that “narrow agency discretion could help Custodia’s case.”
Tech business leaders have praised the choice. According to Kathryn Haun, it was “the most important court case for technology policy in the U.S. in years.” The decision could affect biotech, crypto, AI, and clean energy, among other things.
Regulatory groups can still make rules even if the decision has already been made. Lundy said that Chevron won’t give in if the rules aren’t clear, so this way can’t be used as often.
He said there weren’t many rules about crypto and blockchain in the past, which made him think that the choice might not be that important. The SEC and CFTC will have to consider this case when they make new rules for companies using blockchain and cryptocurrencies. Some people in Europe agreed with this point of view, which might relate to the EU’s plan for the EU’s Markets in Crypto-Assets Regulation (MiCA).
According to Annabelle Rau, a lawyer at McDermott Will & Emery in Cologne, Germany, there may be fewer rules in the U.S. after this ruling. Making the rules clearer through consistent court decisions could lead to new ways of tokenizing digital assets.
It’s clear that the decision changes the regulatory environment, but that doesn’t mean that regulatory bodies can’t do their job and keep an eye on things. Wasick clarified that Loper Bright changes the game but doesn’t always make the call.
An important part of the cryptocurrency community has long said that the SEC went too far when they misunderstood the term “investment contract.” The decision, however, shows that the Supreme Court believes the government has gone too far, as it says Congress should decide how to control Web3.
Simmons warned that the decision would not have its full effect right away because agencies will not change how they do things. More lawsuits will likely need to be filed before big changes can happen, so the company is fighting regulatory moves on its own.
The judge agreed with Lundy that the defense bar will look for fresh and unique ways to challenge SEC and CFTC rules. Soon, there will be big court cases in blockchain and cryptocurrencies.
