Major Questions in the Crypto Industry: Separating Fact from Meme

Uncovering the Use of the 'Major Questions' Doctrine by Major Crypto Companies in Legal Disputes A Look at Binance, Coinbase, Ripple, and Others

Crypto firms like Binance, Coinbase, Ripple, and others use the ‘Major Questions’ doctrine in legal disputes.

You’ve heard it: Binance has “major questions.” Coinbase has “major questions.” Even President Joseph Biden himself had major questions! Just what are these “major questions” that keep haunting the crypto industry? And could it be a legal meme, as some have suggested? Let’s dive into this bizarre world of legal doctrine and government overreach.

To put it simply, the so-called “major questions doctrine” is a legal precedent that aims to rein in government’s excessive control. It’s the idea that Congress writes the rules, and agencies like the SEC and CFTC should follow them. In other words, federal agencies can’t just waltz in and claim authority over uncertain domains without explicit permission. Think of it as the battle between the law and its interpreters.

Picture this: Congress is the composer, crafting the tunes of legislation. The SEC, on the other hand, is the maestro, interpreting and enforcing those laws. But what happens when the maestro starts making up their own melodies, claiming full control over the entire crypto industry? That’s where the major questions arise, my friends.

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Now, let’s take a moment to appreciate the brave souls who invoked this doctrine to defend themselves against regulatory scrutiny. Binance’s U.S. affiliate, for instance, has brandished the major questions doctrine as its secret weapon to thwart an SEC lawsuit. They argue that the SEC has overstepped its boundaries by asserting authority without a clear mandate. Coinbase, the heavyweight crypto player, is singing the same tune. Both exchanges are saying, “Hey SEC, show us the permission slip!”

But here’s the plot twist: the SEC fired back, claiming that major questions have no place in “enforcement authority.” They argue that this doctrine has only been used to strike down “novel regulatory forays” with significant economic and political implications. According to the SEC, Coinbase simply doesn’t carry the same weight. Ouch!

Now, let me take you on a journey through time, back to the birth of major questions. It made its debut in a 2000 Supreme Court decision when the FDA was told to put a muzzle on new tobacco advertising rules. Fast forward to the crypto realm, where major questions surfaced again in 2023. A New Hampshire court declined to apply this doctrine to dismiss FinCEN’s lawsuit against a man accused of operating an unlicensed Bitcoin services business. Things get even more exciting when we discover that this brave man plans to appeal, arguing that a recent Supreme Court decision disempowered federal agencies altogether. Talk about a legal rollercoaster!

But what does all this fuss mean for the crypto industry? Whether major questions apply to crypto or not, one thing is clear: industry participants are craving a clear regulatory framework. They want sanity to prevail and fraud to take a hike. It’s time for lawmakers to step up and pass meaningful reforms that will finally quell these major questions.

So, my fellow crypto enthusiasts, let’s hold on tight and hope that Congress delivers the support we’ve been yearning for. In the meantime, let’s keep our eyes on the ball and continue engaging in this wild, unpredictable dance between regulators and the crypto world.

Reader Interaction: Are you tired of major questions overshadowing the crypto industry? Share your thoughts and join the conversation! Together, we can dance our way to a brighter future. 💃

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