Crypto won big in the Supreme Court’s Loper Bright decision

The Supreme Court’s decision in Loper Bright Enterprises v. Raimondo has created new avenues for challenging federal regulations, significantly impacting the crypto industry.

Points

• SCOTUS decision weakens Chevron deference, allowing more challenges to federal regulations.
• The ruling provides new tools for crypto startups to push back against regulatory overreach.
• Clarification on the statute of limitations benefits startups facing long-standing regulations.
• The decision favors new challenges to federal regulations, empowering innovative startups.

Impact of Loper Bright Enterprises v. Raimondo

In a landmark decision, the Supreme Court of the United States （SCOTUS） ruled in Loper Bright Enterprises v. Raimondo, creating new ways to challenge federal agencies’ regulatory reach into the crypto industry. This ruling significantly weakens Chevron deference, which had previously allowed federal agencies wide latitude in interpreting unclear statutes.

For years, crypto startups have struggled within a regulatory gray area, facing compliance challenges from agencies like the SEC, CFTC, and Treasury Department. The SCOTUS decision shifts the burden onto federal agencies to justify their regulations, providing a level playing field for startups to challenge regulatory overreach.

Statute of Limitations Clarified

Another crucial aspect of the ruling is the clarification of the six-year statute of limitations for challenging federal regulations. Previously, the limitation period was interpreted to begin when the rule was published. The SCOTUS decision now allows the statute of limitations to start when a company is directly affected, as seen in the Corner Post Inc. v. Board of Governors of the Federal Reserve System case. This change is particularly beneficial for newer crypto startups facing old regulations.

Opportunities for Crypto Startups

The combined impact of these decisions heavily favors new challenges to federal regulations, empowering crypto startups to contest unwarranted regulatory creep. Startups now have powerful new tools to challenge outdated or overreaching regulations, potentially shaping a more favorable regulatory environment.

Explanation

• Weakened Chevron Deference: The SCOTUS decision limits the ability of federal agencies to expand their regulatory reach without clear statutory authority.
• Statute of Limitations: The ruling clarifies when the limitation period starts, benefiting startups by allowing more timely challenges to regulations.
• Empowering Startups: The decisions provide new tools for crypto startups to push back against regulatory overreach, fostering a more innovation-friendly environment.
• Strategic Advantage: Crypto startups should seize this moment to challenge unfavorable regulations and shape the future regulatory landscape.