• Ripple is compared to Chevron and XRP to oil, which has been a discussion for several years.
• The Supreme Court announced that it will review the Chevron doctrine, which grants federal agencies such as the SEC significant discretion in interpreting ambiguous laws.
• Critics of the Chevron doctrine argue that it gives regulators overreaching powers and allows them to exceed statutory frameworks.
Comparison of Ripple & Chevron
The comparison of Ripple to Chevron and XRP to oil is already a few years old. Cory Johnson already claimed in 2018: “Ripple is like Chevron, XRP Is like Oil. You can buy all the oil you want and it doesn’t give you access to Chevron profits, and you can be a Chevron shareholder but you have no control over the price of oil.”
Supreme Court’s Review
The Supreme Court announced it will address the Chevron doctrine, which gives federal agencies, such as the U.S. Securities and Exchange Commission (SEC), significant leeway in interpreting ambiguous laws. Supreme Court justices will decide in the next term whether to overturn the decades-old precedent. The 1984 Chevron Deference, named for the court’s decision in Chevron U.S.A. v. Natural Resources Defense Council, has become one of the most frequently cited precedents in U.S. administrative law; establishing that where a statute is ambiguous courts should defer to interpretation provided by regulatory authority given that such interpretation is reasonable
Criticism on Cheveron Doctrine
Critics of the Chevron doctrine argue that it grants regulators overreaching powers and allows them to exceed statutory framework given by Congress; US Attorney James K Filan made a prediction regarding Ripple case against SEC stating concerns about bigger picture i-e how new supreme court makeup may affect cheveron deference .
XRP Community Advocate Views
According to XRP community attorney John E Deaton ,the cheveron doctrine “is dangerous approach because unelected government officials have extreme power” citing example Gary Gensler Chairman of SEC who could disregard existing law .
The upcoming review on Cheveron Doctrine may have some impact on Ripple case against SEC since its outcome could define boundaries between agency discretion and applicable laws set by congress .