- Eleanor Terrett highlighted the negative potential of outgoing regulatory officials.
- Outgoing officials can file a “midnight lawsuit” that is not subject to the CRA.
- Only new regulations can be reviewed by Congress within 60 days of enactment.
Fox Business journalist Eleanor Terrett raised concerns about outgoing regulatory officials potentially targeting the crypto industry in their final days in office. She referenced the 2020 SEC lawsuit against Ripple, describing it as a “midnight lawsuit” designed to avoid oversight under the Congressional Review Act (CRA).
In a post on X, Terrett responded to claims suggesting any last-minute regulations by agencies like the FDIC, SEC, and CFTC would fall under Congressional review. She clarified that not all actions, particularly lawsuits, are subject to such scrutiny.
How the Congressional Review Act Can Shield Crypto
According to the observer, the CRA allows Congress to disapprove federal regulations issued by agencies such as the FDIC, SEC, and CFTC. The observer also clarified that the look-back period for such fresh regulations is 60 legislative days, allowing for the potential review of any new laws from the agencies.
Meanwhile, the observer expressed confidence in the incoming Congress, highlighting its makeup and the assumed favorable simple majority voting requirement for regulations under review. The crypto-regulation observer is confident of a crypto-friendly approach that would make it easy to eliminate malicious laws that may emerge in the final days of the current administration.
Read also: Gary Gensler Reportedly Preparing to Leave SEC Role Before Term Ends
It is worth understanding that any regulation disapproved under the CRA would be difficult to reintroduce. Under such circumstances, regulators aiming for a reintroduction have to reconstruct the rule substantially to reflect a significant change from the reviewed one.
Many crypto community members are excited about Gary Gensler’s expected departure as the SEC chair. They consider Gensler and his team anti-crypto and engaging in acts to hurt the crypto industry. Most community members believe the incoming administration, led by Donald Trump, consists of several crypto-friendly individuals who would promote laws protecting the crypto industry and supporting innovation.
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