But the agency will have to provide a more detailed response if Ripple, Coinbase or crypto groups that have filed friend-of-the-court briefs pushing major questions doctrine arguments manage to pique a judge’s interest.
Former Coinbase manager Ishan Wahi expanded on the major questions theory last February in his motion to dismiss the SEC’s insider trading case.
Under the major questions doctrine, they said, the SEC does not have the requisite Congressional authority to regulate digital assets.
Coinbase’s contention in that paper, released last Thursday, is all-encompassing: The major questions doctrine, according to Coinbase counsel at Sullivan & Cromwell, “forecloses” regulation of the trillion-dollar crypto industry.
But if the SEC moves ahead with a case against Coinbase, the major questions doctrine could turn out to be, well, a major question.