Can the SEC and CFTC’s pro-crypto rules be overturned? Legal opinion
The SEC and the CFTC have issued a raft of pro-crypto rules recently. But will the rules hold up in court, and can they be easily rolled back by the “anti-crypto army”?
The SEC and CFTC have recently introduced rules supporting cryptocurrencies. However, the legal validity of these rules is questionable, and they may be overturned by the courts. Following the failed CLARITY cloture vote in the Senate, both regulatory bodies swiftly issued their own rules for crypto markets. The SEC issued a five-year exemption for stock tokens, while the CFTC exempted certain crypto software providers from registration requirements and proposed a new "crypto asset market" registration category.
However, some industry experts believe these rules could be easily rescinded due to their foundation on shifting sands. A 2024 Supreme Court decision further complicates the matter, as it allows agency rules to be overturned more easily by the courts. Legal experts argue that these rules can be challenged in court if they cause undue burdens on businesses or result in market damage.
The new Supreme Court precedent, Loper Bright, suggests that courts will use their own judgment to apply the Howey case, rather than solely relying on the SEC's interpretations.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
