The cryptocurrency industry, currently under scrutiny by the U.S. Securities and Exchange Commission (SEC), might find relief in a long-established legal doctrine, according to a former advisory committee member to SEC chairman Gary Gensler, J.W. Verret. In a recent podcast, Verret discussed the major questions doctrine and how it could influence the SEC’s current lawsuits against two of the largest crypto companies: Binance and Coinbase.
The major questions doctrine could potentially challenge the Chevron doctrine, which has historically granted regulatory agencies broad discretion in overseeing certain sectors on the basis of unclear mandates from Congress. The major questions doctrine, on the other hand, stipulates that agencies must receive explicit approval from Congress before attempting to regulate areas of significant national, economic, or political importance.
While the major questions doctrine might not come into play until the cases involving Coinbase and Binance.US reach the appellate courts, it’s still a significant aspect looming over the legal proceedings. The Coinbase lawsuit’s outcome in particular has gained attention from the crypto community, with users and enthusiasts alike showing interest.
Both Binance and Coinbase could utilize the major questions doctrine to bolster their arguments for regulatory clarity. Coinbase’s CEO, Brian Armstrong, has even called for Congress to provide explicit guidance to prevent the crypto industry from further migration offshore. However, SEC Chairman Gensler stands firm, asserting that the current securities laws are enough to govern the crypto sphere and classifying the Binance and Coinbase lawsuits as a simple securities case.
Crypto-supported Congress members, such as House Majority Whip Tom Emmer, have expressed dissatisfaction with Gensler’s stance on the issue. Emmer even co-authored a bill this month aiming to both restructure the SEC and terminate Gensler’s tenure.
This subject was recently debated between former SEC official John Reed Stark and billionaire investor Mark Cuban. Stark argued that the cryptocurrency sector has all the regulatory clarity it requires. He stated that securities regulation is designed to be broad and all-encompassing, and strives to avoid specificity. On the other hand, Cuban and other industry participants argue that this lack of clarity may only serve to stifle innovation and growth within the sector.
As the crypto regulatory landscape remains uncertain, the community will closely watch the developments surrounding Binance and Coinbase’s lawsuits. Both outcomes carry significant implications not just for these two major companies, but for the future of cryptocurrency regulation as a whole.
Source: Cryptonews
