A suite of recent Supreme Court decisions will create regulatory uncertainty with significant implications for the private sector and stability of the capital markets.
On Friday, a Supreme Court decision was announced, overturning a longstanding legal standard known as Chevron deference, which enabled federal agencies and their subject matter experts to interpret ambiguous statutes.
The undoing of this doctrine is expected to lead to inconsistencies across the lower courts, if some strike down and others uphold the same regulatory guidance. In turn, businesses and investors would be forced to contend with years of inconsistent and unreliable guidance, as the courts work to resolve potentially conflicting regulatory standards across states.