Crypto Firms Invoke 'Major Questions' Doctrine to Challenge SEC's Authority Over Crypto Regulation
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The "major questions" doctrine limits government agencies from overreach without explicit Congressional permission. Crypto firms cite this against SEC claims that all crypto is under their authority.
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Coinbase and Binance have claimed the SEC lacks authority to regulate crypto without Congress, citing "major questions." The SEC disagrees.
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The doctrine emerged in 2000 to limit FDA rules on tobacco and has been used to challenge agencies regulating new areas.
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Crypto's economic significance is debated - Terra claimed "major questions" protection given crypto's importance but was denied.
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Some argue clearer Congressional crypto laws could settle debates on agencies' authority and stem industry fraud.