New Challenge to CFPB Authority from US Supreme Court
The Consumer Financial Protection Bureau (CFPB) has taken a blow to its authority from the LoperBright Enterprises v. Raimondo case.
The US Supreme Court has pushed open the door to legitimate challenges to the bureau’s authority with its new ruling as the court’s own four-decade ruling has been overturned. That ruling, popularly called SCOTUS v. Chevron, allowed the federal government to regulate the financial sector, particularly in the area of payments and services.
The CFPB is not completely destroyed by this ruling, but its authority could be called into question in the near future as a result of the Supreme Court overturning the ruling. The federal government’s power of regulation was previously seen as overreaching and excessive, and this ruling helps allay some of those fears.
The ruling will not affect cases where there is already some judicial freedom in determining the statutes that are on the books right now. Right now, regulators and government officials are trying to figure out what this ruling means, though. They are attempting to determine the repercussions, and it is important to keep in mind that no existing decisions are going to be overturned as a result. In other words, what has already happened has happened.
How This Ruling Affects Cryptocurrency
Some areas of the financial sector are bound to be more affected by this decision than others. Teens that will see the most impact will tend to be areas where there has not been as much judicial oversight and where regulations are still murky and undecided, particularly the area of cryptocurrency.
The crypto sector is subject to some regulations, but a lot of government regulation in that area is still being figured out, which is why this recent court ruling will be likely to affect crypto more than other financial sectors. How it will affect crypto remains to be seen, but it should open the door to less regulation and allow more freedom for investors, exchange, and vendors, at least in the short term until more definitive regulations can be put into place.
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