The Supreme Court overturned the Chevron doctrine in June 2024 with the Loper Bright decision, removing automatic judicial deference to agency interpretations of ambiguous laws for agencies like the SEC and CFTC. Companies can now challenge agency rules by proving damages and insufficient research, with courts able to reach different conclusions than regulators. The SEC under Paul Atkins has been consulting with crypto firms and VCs and conducting research before issuing new rules within existing law. SEC FAQs are not legislation and carry no regulatory authority; they can be changed at any time, as demonstrated by their rapid revision after criticism from a16z’s legal counsel. The Howey test remains valid but can be interpreted differently on a case-by-case basis, following transparent and documented logic that agencies must explain to courts.
Source: Read the original article
