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Julia Smith
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Julia Smith
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Former U.S. presidential candidate and incoming head of the newly created Department of Governmental Efficiency (DOGE), Vivek Ramaswamy, stated in a December 1 X post that the federal government’s regulatory overhead will face a ‘drastic’ reduction.
Supreme Court Rulings and Federal Oversight
Ramaswamy pointed to two key judicial developments as the foundation for reducing federal regulatory power.
The Supreme Court’s rejection of “Chevron deference,” a principle that allowed federal agencies to interpret ambiguous statutes, and the Major Questions Doctrine, which requires agencies to act only with clear legal authority, were described as transformative.
“Overturning Chevron deference, combined with the Major Questions Doctrine codified in West Virginia vs EPA, paves the way for not a slight but a drastic reduction in the scope of the federal regulatory state,” Ramaswamy wrote in his post. “It’s coming.”
The court decisions, finalized in 2024 and 2022 respectively, restrict federal agencies’ ability to interpret statutes.
These changes are expected to impact numerous industries, including cryptocurrency, which has long been subject to what critics describe as a heavy-handed regulatory approach.
Implications for the Cryptocurrency Sector
The Securities and Exchange Commission (SEC), a frequent target of criticism for its enforcement-focused regulation, has faced scrutiny under these evolving legal standards.
President-elect Trump previously addressed the cryptocurrency community, promising a shift toward regulations designed by “the people who love your industry, not hate your industry.”
Former SEC chair Gary Gensler, who resigned last month, was often criticized for policies that stifled innovation within the blockchain industry.
Trump’s administration, bolstered by DOGE’s mission, seeks to realign regulatory efforts to foster growth and efficiency.
DOGE’s Role in Reshaping Federal Bureaucracy
The Department of Governmental Efficiency (DOGE), led by Vivek Ramaswamy and tech entrepreneur Elon Musk, has been tasked with streamlining federal oversight and eliminating unnecessary bureaucratic layers.
In a November statement, President-elect Trump outlined the department’s objectives, stating, “Elon and Vivek will dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies.”
The initiative seeks to enhance government efficiency while addressing longstanding criticisms of regulatory overreach. Progressive voices have also weighed in on DOGE’s mission.
Senator Bernie Sanders, in a December 2 X post, expressed agreement with some of Musk’s critiques of federal inefficiency, calling him “right” about the need for reform.
As the Trump administration prepares to take office, many stakeholders are awaiting specifics on the regulations DOGE intends to address.
The department’s actions are anticipated to bring major changes to the federal regulatory framework, with potential implications across various industries, including cryptocurrency.
