The Breakdown The SEC's Horrible, No Good, Very Bad Week
Jul 2, 2024
Exploring the legal implications for cryptocurrency and administrative state power, including the overturning of Chevron deference. Dive into the SEC's lawsuits against DeFi protocols and exchanges like Binance, focusing on the classification of stablecoins and tokens as securities.
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Chevron Precedent Overturned
- The Supreme Court overturned the 40-year-old Chevron precedent, impacting the administrative state's power.
- This weakens agencies' ability to interpret legislation broadly, shifting power back to Congress.
Impact on Crypto Regulation
- The overturning of Chevron deference may significantly impact crypto regulation.
- Courts will now interpret laws, potentially challenging the SEC's broad interpretation of the Howey Test.
SEC Lawsuit Against Consensus
- The SEC sued Consensus, alleging MetaMask's swap function operates as an unregistered broker.
- They also claim the staking services offered via MetaMask are unregistered securities offerings.