Chris Curl,
Editor
July 18, 2024
Last month, the United States Supreme Court decided to overturn what is known as the Chevron deference Rule, a judicial doctrine that has had widespread implications for American regulatory practices since 1984.
The ramifications of this action are not only vast but incredibly beneficial to the average American and anyone who values individual freedom. Understanding the impact of this decision requires a dive into the history and consequences of the Chevron deference.
Named after the landmark case Chevron U.S.A., Inc. v. Natural Resources Defense Council, Inc., the doctrine established a precedent where courts would defer to executive agency interpretations of ambiguous statutory mandates as long as those interpretations were deemed "reasonable."
This might sound benign, but it resulted in an alarming concentration of power within the executive branch, specifically within unelected federal agencies. These agencies, bestowed with the authority to both create and interpret rules, essentially became the judge, jury, and executioner in the regulatory arena.
This is what is commonly called the “deep state.”
The founding fathers of the United States meticulously designed a system of governance where the powers to legislate, enforce, and interpret law were deliberately separated among the legislative, executive, and judicial branches respectively.
3 AI Stocks That Could Make Us More Than Nvidia
Find out the 3 small AI stocks at the top of Big Tech’s buyout list — and why we’re likely just weeks away from the next round of triple-digit gains.
The concentration of these powers within a single entity was considered antithetical to liberty and a magnet for tyranny.
However, over the years, this healthy separation of powers eroded, and with Chevron deference, the executive agencies amassed unprecedented control over vast swathes of public life, wielding regulatory power with minimal accountability to the public.
The Congress was always intended to be the sole creator of laws but has since abdicated its responsibility to unelected bureaucrats in the various 3-letter agencies. All of that would be fine if these bureaucrats served the public good, but that is clearly not the case.
Corporate capture has significantly corrupted America's federal agencies and regulators by allowing corporate interests to infiltrate and dominate the regulatory process.
It’s common knowledge to anyone who lives around the Capital Beltway, and it’s been a major talking point of RFK Jr’s presidential campaign.
This phenomenon occurs when industries exert undue influence over the very agencies meant to regulate them, often through lobbying, campaign contributions, and the revolving door between regulatory agencies and industry jobs.
These powerful corporations deploy immense financial resources to ensure that regulations favor their business models, even at the expense of public interest and market fairness. As a result, regulatory frameworks often become skewed towards protecting established corporate players from competition, stifling innovation, and creating barriers for emerging businesses.
This undermines the principles of free market competition and weakens public trust in the regulatory system, as agencies appear to serve the interests of a select few rather than the broader public.
The Supreme Court's decision to overturn Chevron deference in this context is a significant victory for American liberty. It means that agencies no longer have unfettered power to interpret vague statutes in ways that can stifle competition, innovation, and individual freedoms. Instead, the interpretation of laws has been returned to the courts, where it rightfully belongs according to the Constitution.
Critics argue that this could lead to regulatory chaos and open the floodgates for corporate malfeasance. However, these concerns are largely unfounded.
The reality is that agencies will now be held to a higher standard, requiring clearer legislative mandates that reflect the democratic will expressed through Congress. This decision will curb the undue influence of powerful corporate interests that have manipulated regulatory frameworks to their advantage, suppressing competition and innovation under the guise of reasonable regulation.
By reinstating judicial review and accountability, the Court has paved the way for a resurgence in entrepreneurial freedom and innovation. Products and technologies such as nuclear energy, artificial intelligence, cryptocurrency, and small businesses, which have been hampered or pushed out by overzealous and unaccountable regulation, are now poised to thrive.
All of this bodes well for the cryptocurrency industry, which has long been burdened by an ambiguous and downright hostile regulatory environment.
The Gary Gensler led SEC has arbitrarily clamped down on crypto exchanges and projects left and right with little discernible framework. This has led many judges to throw out cases on the basis of their legal merits – which are scant.
[For Crypto Newbies] An Opportunity To
‘Earn While You Learn’ About Cryptocurrencies
Click here now…
Now with the Chevron Deference overturned, courts will no longer defer to regulatory agencies' interpretations, paving the way for more balanced judicial evaluations.
This shift will likely create a more stable regulatory environment, fostering innovation and growth within the cryptocurrency sector - rather than stifling it. Additionally, by diminishing the sway of entrenched regulatory bodies, the playing field becomes more level, giving emerging cryptocurrency businesses an opportunity to compete more fairly and develop new technologies without undue bureaucratic interference.
This new era of judicial oversight offers hope for a landscape where regulatory frameworks align more closely with the evolving needs of the free market.
Keep coming back,
Chris Curl
Editor, Daily Profit Cycle