The US Supreme Court has overturned Chevron, a 1984 court decision that gave federal regulatory agencies the power to interpret unclear statutes. This decision is likely to have significant consequences, particularly for regulatory agencies such as the Securities and Exchange Commission (SEC), the Environmental Protection Agency (EPA), and other financial, environmental and consumer protection regulators.
The Chevron decision allowed agencies to use their in-house experts to authoritatively interpret and apply laws in court. The reversal of this ruling means that regulatory agencies will have less discretion to interpret the law, and that more cases will have to be litigated before the courts for resolution, rather than being decided by the agencies themselves.
This decision could call into question regulations established by the EPA, such as automobile emissions standards, and affect the way in which the SEC interprets securities laws, which date back almost a century and must adapt to changes in the financial system, particularly with regard to digital assets.
The implications of this decision could also extend to other agencies, such as the Federal Trade Commission (FTC), and their ongoing initiatives, such as attempts to ban non-compete clauses.
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