In a landmark 6-3 decision, the U.S. Supreme Court struck down the 1984 Chevron decision, which required federal judges to rely on federal agencies' “reasonable” interpretations of unclear laws passed by Congress.
This decision marks a significant shift in the balance of power between the judiciary and federal agencies.
Chief Justice John Roberts, who wrote the decision for the majority, emphasized that courts must independently evaluate whether institutions are acting within legal limits. “Courts must use their independent judgment in determining whether an agency is acting within its lawful authority, as required by the APA [Administrative Procedures Act], while courts are not required to and cannot defer to an agency's interpretation of the statute simply because a statute is vague, under the APA,” Roberts wrote. ” said.
The decision sparked various reactions from different sectors. Ripple Chief Legal Officer Stuart Alderoty expressed strong approval of the decision, especially in the context of the Securities and Exchange Commission's (SEC) regulatory approach.
“Gary Gensler thinks the SEC is a 'patrol cop' created to freely police whatever he wants. By striking down Chevron today, the Supreme Court made clear that the views of eager bureaucrats deserve no special deference and that their authority is limited by Congress and the Courts.” said.
Economist Timothy Peterson evaluated the effects of the decision on the cryptocurrency market, especially Bitcoin:
“This is the biggest win for Bitcoin. It is much more important than any case or law. The Chevron doctrine meant that the implementing agency was the automatic subject matter expert. They are not anymore. SCOTUS's reversal of the Chevron doctrine limits the SEC's unilateral interpretive authority against Bitcoin. All those 'staff opinions' saying 'so-and-so is a security'? No more. “Courts must now examine the SEC's anti-Bitcoin stance, potentially leading to fairer regulations and a more balanced legal environment.”
*This is not investment advice.
