Supreme Court Rules to Overturn the Chevron Doctrine, Curbing Federal Agencies’ Power

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Cheyenne Ligon is a CoinDesk news reporter with a focus on crypto regulation and policy. She has no significant crypto holdings.

The U.S. Supreme Court has overturned a 40-year-old case that allowed federal regulators to enforce their interpretation of ambiguous laws.

The U.S. Supreme Court ruled 6-3 on Friday to drastically curb the authority of federal regulators, overturning a 40-year-old legal precedent that gave regulatory agencies leeway to interpret the laws they are tasked with enforcing. Since the original ruling was handed down, the so-called “Chevron deference” has allowed regulators to take action on time-sensitive issues while they wait for Congress to pass new laws. The rationale behind the decision was that agencies are more likely to have the knowledge and expertise required to interpret the laws they enforce than courts would.

Associate Justice Elena Kagen dissented, writing:"In every sphere of current or future federal regulation, expect courts from now on to play a commanding role. It is not a role Congress has given to them, in the APA or any other statute. It is a role this Court has now claimed for itself, as well as for other judges.”

 

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