Crypto companies are hoping a new US Supreme Court doctrine will place the SEC in an uncomfortable spot. June 2022 saw the Supreme Court adopt the major questions doctrine, which states that Congress does not delegate extraordinary cases which have significant political and economic impact to federal agencies. Companies such as Coinbase have cited this doctrine in their legal defense to show the SEC has no authority over crypto, including token classification. Former Coinbase product manager Ishan Wahi also used the doctrine in his February defense against charges of insider trading, stating that the SEC need 'clear' statutory authority to regulate digital assets, which they did not have. However, Wahi later pleaded guilty and was sentenced to two years. SEC Chair Gary Gensler dismissed the argument by stating that the crypto industry has enough information to operate within the law, and that nothing about new technology should be exempt from public policy.
William Brown
- 2023-05-15
SEC Facing Unease from Supreme Court Doctrine
The Supreme Court recently adopted the major questions doctrine, raising questions as to whether the SEC can regulate crypto. Coinbase and other crypto companies cite this doctrine in their legal defense to show the SEC has no authority over the industry, while SEC Chairman Gary Gensler dismisses the argument, citing enough information for the industry to operate within the law.
