Supreme Court Ruling Puts Crypto Rulemaking in Jeopardy

The Supreme Court has made two significant rulings that threaten the independence of regulatory agencies in the US. In one decision, it preserved the Federal Reserve's independence from presidential removal, while in another, it stripped similar protections from other independent agencies, including the Securities and Exchange Commission (SEC).

Noah Feldman, a Harvard Law professor and Bloomberg columnist, argues that the impact of this ruling on the SEC has been 'curiously overlooked.' He notes that commissioners now serve at the pleasure of the president, who can fire them at any time for any reason.

This development is particularly concerning for the crypto industry, as both the SEC and Commodity Futures Trading Commission (CFTC) are actively working on digital asset rulemaking. The SEC currently has three Republican commissioners, while the CFTC operates with a single commissioner, Chair Michael Selig. The durability of any rules produced by these agencies is now in question.

Feldman warns that this ruling could lead to increased market volatility as regulatory agencies become more susceptible to political pressure.