Crypto Market News: In the wake of the recent clash between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), a new US Supreme Court consideration could potentially curb the two agencies’ regulatory powers over the crypto market. Already, several CEOs and company executives in various crypto companies have come to a conclusion that only the judicial action could land respite from the regulatory scrutiny. Since January 1, 2023, the US SEC initiated numerous enforcement actions against crypto businesses, going to the extent of settling charges with the likes of top crypto exchange Kraken.
As recently as March 2023, leading crypto exchange Binance and its chief executive officer Changpeng “CZ” Zhao, were dragged into a lawsuit over regulatory violation by the CFTC. Another top exchange Coinbase also received a Wells notice, a warning before possible enforcement action, from the US SEC.
US Supreme Court Could Indirectly Intervene In XRP VS SEC Lawsuit
In a fresh move, US Supreme Court is considering getting rid of a legal doctrine that gives regulatory agencies like the US SEC and the CFTC bandwidth to decide on their own regulatory purview. In the case of CFTC, the agency’s chair Rostin Behnam recently told a Senate committee that Ethereum is a commodity, in sharp contrast to the US SEC Chair Gary Gensler’s argument that all tokens except Bitcoin fall under the securities laws. With this, the two agencies effectively got into a clash over which crypto tokens to be governed by whom.
Hence, the new Supreme Court consideration, which which is to reverse the 1984 Chevron vs Natural Resources Defense Council ruling, will rob agencies like SEC and CFTC of having the final say in matters where there is no reasonable justification or clarity as per law, as per a Bloomberg report.
Reacting on the development, John Deaton, the attorney representing over 70,000 XRP token holders in the SEC lawsuit, said this move by the top court could be something huge for the crypto market. Overall, any developments to this effect around the SEC and CFTC powers to regulate crypto could have a major impact on the XRP lawsuit.
On the other side, the US SEC has been constantly expressing its views on “come forward and register stance.” In contrast to the majority industry opinion, the Gary Gensler led agency says the existing securities laws are applicable to the crypto market.
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