SCOTUS Overturns Chevron Doctrine, Putting Thousands of Regulations in Limbo

Karen Solomon’s commentary was included in a Compliance Week article on the U.S. Supreme Court’s overturning of the Chevron doctrine. Karen examines how the court’s decision affects existing regulatory issues and what the decision means for the future.

Karen points out that the ruling does not unravel the thousands of court decisions already handed down that rely on Chevron, including numerous banking regulations. “In the longer term, banks may be more inclined to challenge agency interpretations,” she said. “If the playing field is leveled because courts are no longer required to defer to agency interpretations, banks may see less reason to refrain from challenges in cases where they believe the agencies have overstepped.”

“Banking agency rules, especially those issued jointly by the three agencies, may take longer to complete. Interagency negotiations could be even more protracted than they are now, and individual agencies may add layers of internal review to their decision making in an effort to protect against reversal of their decisions in court,” Karen added.

Click here to read the full article.