The Cryptocurrency Sector Puts its Hopes in a New Supreme Court Ruling to Sideline the SEC

The crypto sector is anticipating a victory against Gensler thanks to a new Supreme Court theory.

Federal authorities are skeptical of the claims of crypto corporations that a new US Supreme Court concept would provide the legal precedent for the SEC to stand aside.

The Supreme Court ruled in favor of the states that had challenged the EPA’s authority to regulate greenhouse gas emissions in June of 2022. To reduce the expansive authority of federal agencies, the Supreme Court chose to formalize the key issues doctrine.

The idea states that the Supreme Court, and not government agencies like the Environmental Protection Agency or the Securities and Exchange Commission, should decide “extraordinary” cases that include concerns of considerable political and economic importance.

In response to the SEC’s Wells notice and impending enforcement action, Coinbase mentions the concept in April 2023. When it comes to crypto and token categorization, Coinbase’s legal team contended that the SEC has no authority to act unilaterally.

During his keynote talk at Monday’s 2023 Financial Markets Conference, SEC Chair Gary Gensler said, “Everything that we do as an agency is based upon the authorities Congress has given us.” To ensure that “we stay within our authorities in the law,” “we look at those closely,” whether they be from the Fifth Circuit, the Supreme Court, or another circuit court.

Ishan Wahi, a former manager of Coinbase’s products, also used this principle while defending his actions. Wahi challenged the SEC’s jurisdiction over cryptocurrency tokens and trading in an effort to have the case dismissed back in February. He did so by using the big issues doctrine.

Also Read: Popular Crypto Analyst Predicts Bitcoin (BTC) Will Hit New Highs This Year