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Sen. Coons’ S. 4751 Could Limit Crypto Firms’ Ability To Challenge SEC

Author: Content Editor
The U.S. Supreme Court's decision in Corner Post, Inc. v. Board of Governors of the Federal Reserve System in July 2024 expanded the ability of plaintiffs to sue federal agencies by ruling that the statute of limitations starts when the plaintiff is harmed, not when the action occurs. Senator Chris Coons (D-DE) has sponsored Senate bill 4751, the Agency Stability Restoration Act of 2024, which aims to limit the extended timeframe for companies to file lawsuits against regulations by setting a strict six-year statute of limitations from the date of the agency action, regardless of when harm occurs. If passed, the Act could significantly impact the legal strategy of the crypto industry, which often challenges SEC enforcement actions under the Administrative Procedure Act by demonstrating harm from the agency's actions. The passage of the Act could result in faster litigation, limited long-term challenges, limitations on innovation, and more aggressive SEC enforcement. However, some argue that the Act could bring regulatory certainty and encourage earlier engagement with regulators. A more balanced approach could provide regulatory certainty while allowing time for innovative industries like crypto to adapt, challenge, and collaborate on regulations that impact their growth.

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