Fox Business journalist Eleanor Terrett has raised concerns about outgoing regulatory officials potentially targeting the cryptocurrency industry in their final days in office. Terrett highlighted the 2020 SEC lawsuit against Ripple, describing it as a “midnight lawsuit” designed to bypass oversight under the Congressional Review Act (CRA).
In a post on X, Terrett responded to arguments that last-minute regulations by agencies such as the FDIC, SEC, and CFTC would be subject to review by Congress. She clarified that while the CRA applies to federal regulations, actions such as lawsuits do not fall under its scope. These differences have raised debates on how regulators might take advantage of this chance or opening.
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Congressional Review Act’s Role in Crypto Oversight
The Congressional Review Act allows Congress to disapprove federal regulations issued by agencies within a 60-legislative-day window. Relative to this mechanism, it provides more power to Congress in the matter of reviewing the newly issued rules for further reversing them. With this composition and given the assumption that repealing regulations would require a simple majority, the next Congress could be more favorable to crypto.
Any regulation disapproved under the CRA would face significant hurdles for reintroduction. If an agency desired to place back a rule that was previously rejected and deleted, then it must ensure it was not a copy of the prior version. This is beneficial for industries such as crypto as it provides a shield from those hasty or unfavorable policies that might be developed in the last days of the administration.
Crypto community members have expressed optimism about Gary Gensler’s anticipated departure as SEC chair. Some see Gensler as unfriendly to crypto and think the regulator may change its approach when he is gone. Some of them believe that soon after the change in the White House occupant from Joe Bidden to Donald Trump, they will be admitted by policymakers who will transform and protect the sector.
Conclusion
The potential for last-minute regulatory actions continues to raise concerns in the crypto industry. Observers are counting on the Congressional Review Act and an incoming pro-crypto administration to ensure fair oversight and protection for digital assets.
Also Read: SEC’s Internal Communications Reveal Selective Approach to Cryptocurrency Regulation
