Bedrock Wall Street Rules Threatened by Supreme Court Ruling

The SEC’s closely watched enforcement case against crypto giant Coinbase Global Inc. was highlighted as an example in a recent report by Bloomberg Intelligence on the potential effects of a high-court ruling to weaken Chevron deference.

Ahead of the ruling, legal experts also pointed to new SEC climate reporting rules for public companies as among those that could be most vulnerable. The regulator stayed the rule in April amid a spate of court challenges and it is also being appealed in federal court.

Meanwhile, the path for resuscitating the SEC’s rules requiring hedge funds to detail more fees and expenses to investors could also be more difficult. A federal appeals court in New Orleans recently vacated those regulations in June, saying that the agency “exceeded its statutory authority.”

The SEC’s Rule 10b5-1, a regulation to protect against insider trading, has also benefited from Chevron deference, David Petron, a partner at Sidley Austin, said in a January presentation.

Source: Bedrock Wall Street Rules Threatened by Supreme Court Ruling (1)