Fun

Experts say latest SCOTUS opinions will limit SEC power over crypto

News Feed - 2024-07-02 05:07:58

Turner Wright3 hours agoExperts say latest SCOTUS opinions will limit SEC power over cryptoThe conservative members of the U.S. Supreme Court sided with two majority opinions that could have lasting implications for federal agencies to enforce laws.989 Total views10 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksIn the last seven days, the Supreme Court of the United States (SCOTUS) has released two opinions that could have lasting implications for how the U.S. Securities and Exchange Commission handles enforcement actions against companies, including crypto firms.


In a 6-3 decision released on June 27 in SEC v. Jarksey, the court’s majority opinion held that defendants in an SEC civil case concerning securities fraud are entitled to a jury trial rather than strictly adjudication by an administrative law judge. The court’s conservative members said it considered “common law fraud principles when interpreting federal securities law common law fraud” — seemingly equating an SEC civil case involving securities fraud to a criminal case involving fraud.


SCOTUS followed the SEC v. Jarksey decision with a June 28 opinion — Loper Bright Enterprises v. Raimondo — overturning a 1984 ruling that established the Chevron deference, or doctrine. Though not explicitly referring to the SEC, the court’s opinion would require lower courts “to exercise their independent judgment in deciding whether an agency has acted within its statutory authority” and not defer to federal agencies’ interpretation of the law.


“This has direct implications for the crypto industry,” Crypto Council for Innovation CEO Sheila Warren told Cointelegraph. “The role and firepower of regulators, like the SEC, is in question if courts have the ability to step in.”


Warren added:“Make no mistake, [the] Supreme Court decision imposes clear limits on the regulatory overreach that has hampered innovation in crypto in the United States.”


In her dissent over the SEC v. Jarkseydecision, Justice Sonia Sotomayor referred to the majority opinion as a “power grab” over policymaking in the U.S. Congress. Justice Elena Kagan wrote a dissent in the Loperdecision, saying that the majority had a pattern of reversing “settled law” and “overhaul[ed] a cornerstone of administrative law.”


The impact of these decisions on the SEC filing enforcement actions against crypto firms could mean an overwhelmed court system. According to Joseph Lynyak, a partner at the international law firm Dorsey & Whitney, courts obeying SCOTUS’ overturning the Chevron doctrine “may be inundated with private parties who may now litigate and relitigate an agency interpretation, including creating conflicting decisions by lower courts.”


“With these rulings, the Supreme Court has not only succeeded in upending half a century of important legal precedent, known as the Chevron doctrine, but has also made it much easier for big, wealthy corporations to benefit at the expense of ordinary people and escape civil penalties,” said Representative Maxine Waters on June 28 in response to the SCOTUS opinions.


Related:EU MiCA stablecoin regulations come into effect: Law Decoded


The conservative-led Supreme Court filed several opinions near the end of its term that could have lasting implications for the SEC and the U.S. presidency. On July 1, in a 6-3 ruling, the justices said that former President Donald Trump had “at least presumptive immunity from prosecution for all his official acts” while in office. Trump, who is running for reelection in 2024 and has already been the first candidate with a criminal conviction, allegedly used his position to subvert the results of the 2020 presidential election.


Both SCOTUS decisions came amid the SEC filing an enforcement action against Consensys, the parent company of MetaMask. The regulator alleged Consensys operated as an unregistered broker and engaged in the unregistered offer and sale of securities through MetaMask Swaps.


Magazine:Godzilla vs. Kong: SEC faces fierce battle against crypto’s legal firepower# Government# SEC# United States# Cryptocurrency Exchange# Court# RegulationAdd reaction

News Feed

Dow Teeters After Fed Quietly Shades Trump
The Dow teetered on Thursday as Wall Street continued to wrestle with the fallout from the Federal Reserve’s second straight “insurance” cut. Analysts have spent
Robert Kiyosaki Warns of ‘Biggest Bond Crash Since 1788’ — Waiting to Buy Bitcoin at Lower Price
Robert Kiyosaki Warns of "Biggest Bond Crash Since 1788" — Waiting to Buy Bitcoin at Lower Price The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, ha
The Top 5 NFT Marketplaces Surpass $40 Billion in All-Time Sales
The Top 5 NFT Marketplaces Surpass $40 Billion in All-Time Sales While non-fungible token (NFT) sales have slipped since the start of the year, the top five marketplaces, in terms
Bitconnect Victims to Receive Over $17 Million in Restitution From Ponzi Scheme
Bitconnect Victims to Receive Over $17 Million in Restitution From Ponzi Scheme More than $17 million in restitution will be distributed among investors in the pyramid scheme Bitco
FTX Co-Founder Sam Bankman-Fried Agrees to Testify Before US Congress
FTX Co-Founder Sam Bankman-Fried Agrees to Testify Before US Congress The co-founder of collapsed crypto exchange FTX, Sam Bankman-Fried (SBF), has agreed to testify at one of the
Tesla CEO Elon Musk Gives Investment Advice He Says ‘Will Serve You Well in the Long Term’
Tesla CEO Elon Musk Gives Investment Advice He Says "Will Serve You Well in the Long Term" Tesla and Spacex CEO Elon Musk has shared his recommended investment strategy, which he b
FTX and CFTC agree to $12.7B settlement, subject to court approval
Brayden Lindrea1 hour agoFTX and CFTC agree to $12.7B settlement, subject to court approvalThe US commodities regulator didn’t seek a civil monetary penalty, meaning the entire $12.7 billion would be used to pay back F
Grayscale’s New Co-Investment Vehicle Aims to ‘Capture the Upside of Crypto Winter’
Grayscale"s New Co-Investment Vehicle Aims to "Capture the Upside of Crypto Winter" On October 6, Grayscale Investments announced a new venture that gives accredited investors the
Report: Ripple CEO Brad Garlinghouse Hints at Future Mergers and Acquisitions
Report: Ripple CEO Brad Garlinghouse Hints at Future Mergers and Acquisitions While visiting the World Economic Forum (WEF) event in Davos, Ripple Labs CEO, Brad Garlinghouse discu
Supreme Court ruling ‘changes the game’ for US crypto firms
Andrew SingerJul 11, 2024Supreme Court ruling ‘changes the game’ for US crypto firmsThe high court’s decision further bolsters the argument “that Congress, not an agency, should decide if — and how — to regul
HSBC’s CEO Explains Why Crypto Is Not in the Banking Giant’s Future
HSBC"s CEO Explains Why Crypto Is Not in the Banking Giant"s Future Banking giant HSBC will not be offering crypto services, according to CEO Noel Quinn. Noting that HSBC is more n
Europeans to See More Interest Rate Hikes, Central Bank Governors Indicate
Europeans to See More Interest Rate Hikes, Central Bank Governors Indicate Further rate hikes are warranted by persisting inflation in the eurozone, according to members of its mon