23 min
What the Potential Elimination of the Chevron Deference Means to SEC Policymaking? Bid Out with Peter Haynes
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- Business
In Episode 59, we are joined by J.W. Verret, professor at the Antonin Scalia School of Law at George Mason University, to discuss a key tenet of rulemaking for US Government Agencies known as the Chevron Deference (or Doctrine). The Chevron Deference is a 40-year-old Supreme Court doctrine that empowers agencies such as the SEC to enact rules in areas of jurisdiction that may not be clearly defined in the law. The doctrine states that Courts "defer" to agencies in areas of ambiguity, the thinking being that agencies have staff that are subject matter experts. However, the limits of this power are often tested in court when agencies propose rules that plaintiffs suggest exceed rulemaking authority.
Recently a case that could impact Chevron – Loper Bright Enterprises vs Raimondo - made it to the Supreme Court. Loper vs Raimondo is a case that challenges a ruling by the National Marine Fisheries Service (a subsidiary agency of the US Department of Commerce) over who should pay for federal observers placed on Herring fishing boats in Maine. The outcome of this ruling could alter or eliminate Chevron and lead to a material erosion in the rulemaking powers of US government agencies including the lengthy agenda of proposed rules at Chair Gensler's SEC. Interestingly, as we learn in this episode, the one area of SEC rulemaking that might be immune to a weakened or eliminated Chevron Deference is equity market structure. Tune in to learn why and get Professor Verret's take on this important case and its implications for Gensler's SEC rulemaking agenda.
Chapter Headings:
1:25 - What is the Chevron Deference?
4:38 - Loper Bright Enterprises vs Raimondo
9:10 - Implications for the Gensler Rulemaking Agenda
11:30 - How Agencies Write Rules Without Chevron
15:00 - Why Equity Market Structure Rules Might be Exempt?
Guests:
J.W. Verret JD, CPA/CFF, CFE, CVA, Associate Professor, Antonin Scalia Law School, George Mason University
Disclaimer:
This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed.
In Episode 59, we are joined by J.W. Verret, professor at the Antonin Scalia School of Law at George Mason University, to discuss a key tenet of rulemaking for US Government Agencies known as the Chevron Deference (or Doctrine). The Chevron Deference is a 40-year-old Supreme Court doctrine that empowers agencies such as the SEC to enact rules in areas of jurisdiction that may not be clearly defined in the law. The doctrine states that Courts "defer" to agencies in areas of ambiguity, the thinking being that agencies have staff that are subject matter experts. However, the limits of this power are often tested in court when agencies propose rules that plaintiffs suggest exceed rulemaking authority.
Recently a case that could impact Chevron – Loper Bright Enterprises vs Raimondo - made it to the Supreme Court. Loper vs Raimondo is a case that challenges a ruling by the National Marine Fisheries Service (a subsidiary agency of the US Department of Commerce) over who should pay for federal observers placed on Herring fishing boats in Maine. The outcome of this ruling could alter or eliminate Chevron and lead to a material erosion in the rulemaking powers of US government agencies including the lengthy agenda of proposed rules at Chair Gensler's SEC. Interestingly, as we learn in this episode, the one area of SEC rulemaking that might be immune to a weakened or eliminated Chevron Deference is equity market structure. Tune in to learn why and get Professor Verret's take on this important case and its implications for Gensler's SEC rulemaking agenda.
Chapter Headings:
1:25 - What is the Chevron Deference?
4:38 - Loper Bright Enterprises vs Raimondo
9:10 - Implications for the Gensler Rulemaking Agenda
11:30 - How Agencies Write Rules Without Chevron
15:00 - Why Equity Market Structure Rules Might be Exempt?
Guests:
J.W. Verret JD, CPA/CFF, CFE, CVA, Associate Professor, Antonin Scalia Law School, George Mason University
Disclaimer:
This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed.
23 min