Chevron overturn unlikely to impact SEC’s conduct — Ripple CLO

As a seasoned researcher with over two decades of experience in the ever-evolving world of finance and technology, I find myself deeply concerned about the current state of regulatory affairs, particularly as they pertain to the burgeoning crypto industry. The recent overturn of Chevron USA Inc. vs. Natural Resources Defense Council by the Supreme Court, while technically a victory for clarity in administrative law, has unfortunately created more confusion and uncertainty within the crypto sector.


According to Stuart Alderoty, Ripple’s top legal officer, the anticipated overturning of the Chevron USA Inc. vs. Natural Resources Defense Council case in June 2024 by the U.S. Supreme Court is not expected to significantly alter the Securities and Exchange Commission’s (SEC) approach towards enforcing cryptocurrency compliance.

During an interview with Turner Wright at CryptoMoon, Alderoty highlighted the need for a new leadership team within the SEC to bring about a change in their stance on the subject matter.

The Ripple CLO stated that, under the current leadership, he believes significant harm has been inflicted upon an institution that used to be highly esteemed within the Securities and Exchange Commission.

Additionally, Alderoty pointed out that the Securities and Exchange Commission (SEC) intentionally pursuing lawsuits against the cryptocurrency sector, as demonstrated by its ongoing appeal in the Ripple case, is designed to instill a high level of perplexity among crypto industry players.

“This SEC, under this leadership, I don’t think they much care if they’re right or wrong as a matter of law. I think their goal is through a massive wave of enforcement actions — and now on appeal — to keep a cloud of legal uncertainty over the industry.”

Alderoty stated, “In the end, I believe they’ll be found incorrect once more, and it seems they’re not concerned about that. Regarding the SEC’s tough approach towards cryptocurrencies, I find it extremely concerning.

Loper Bright vs. Raimondo — overturning 40 years of precedent

On June 28, 2024, the United States Supreme Court ruled against a 40-year tradition established by the Chevron case in 1984. This precedent allowed courts to generally accept the ways regulatory agencies enforce their policies, even if those methods seemed arbitrary. However, this decision was overturned in the Loper Bright Enterprises v. Raimondo case.

Chevron overturn unlikely to impact SEC's conduct — Ripple CLO

In simple terms, the emerging cryptocurrency sector found it challenging due to stringent regulatory requirements from various government bodies. These regulations often stifled creativity and made it difficult for new startups, particularly institutional investors, to participate, as they were deterred by these complex demands.

In July 2024, Uniswap Labs used the Chevron decision as evidence in their opposition to the Securities and Exchange Commission’s proposed broadening of the definition of what constitutes an “exchange” under the Exchange Act of 1934. This potential regulatory change would extend the jurisdiction of the SEC over decentralized finance projects.

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2024-10-16 23:39