Oct. 11, 2023
Desly Hill 10 October 2023 Securities and Exchange Commission 100 F Street NE Washington, D.C. 20549 Subject: Letter of Support for the Application of the Major Questions Doctrine in Cryptocurrency Regulation Dear Sir/Madam, I am writing to express my support for the application of the Major Questions Doctrine in the regulation of cryptocurrencies by the Securities and Exchange Commission (SEC). The SEC's role in protecting investors, maintaining fair markets, and promoting capital formation is vital, and I believe that adhering to the Major Questions Doctrine is crucial in ensuring that the SEC's regulatory actions in the rapidly evolving digital asset space are both fair and legally sound. The Major Questions Doctrine, a legal principle, emphasizes that administrative agencies, such as the SEC, should not regulate on matters of significant economic or political significance without clear congressional authorization. This principle underscores the importance of democratic representation and oversight in shaping substantial regulatory decisions. The Supreme Court has invoked this doctrine in various cases, including FDA v. Brown & Williamson Tobacco Corp. (2000) and Utility Air Regulatory Group v. EPA (2014), to curb agency overreach. As the cryptocurrency market continues to evolve, the SEC's approach to regulating digital assets has come under scrutiny. The classification of cryptocurrencies as securities, in particular, has raised questions and concerns. The Major Questions Doctrine is profoundly relevant in this context, as it serves as a restraining factor, mandating that the SEC does not extend its regulatory authority over cryptocurrencies without explicit guidance from Congress. Cryptocurrencies represent a new and transformative technology with applications extending far beyond digital assets. Clear regulations are the foundation upon which businesses and entrepreneurs can thrive, fostering innovation and contributing to economic growth. The blockchain technology that underpins cryptocurrencies holds promise in a multitude of sectors, including supply chain management, healthcare, finance, and more. Regulatory clarity is essential to facilitate the widespread adoption of these technologies, which offer improvements in security, transparency, and efficiency across various industries. Furthermore, the Major Questions Doctrine is pivotal in protecting the interests of investors. Regulatory clarity allows investors to make informed decisions, reduces the risk of fraudulent activities, and enhances market transparency. Protecting investors is a core objective of the SEC, and regulatory clarity plays a crucial role in building trust and confidence in financial markets. In an increasingly globalized world, regulatory decisions made by the SEC impact the United States' global competitiveness. Clarity in cryptocurrency regulation is a significant factor in attracting international investors, companies, and talent. Some countries have already taken decisive steps in providing regulatory guidance for digital assets, making them more attractive destinations for blockchain and cryptocurrency-related investments. Falling behind in this rapidly evolving sector could have far-reaching consequences, affecting the country's position in the global digital economy and potentially hindering economic growth. The Major Questions Doctrine has been invoked in the past to limit the authority of federal agencies in making substantial regulatory decisions. Legal precedents exist in which courts have applied this doctrine to prevent regulatory overreach. These cases serve as a robust argument that the SEC's attempts to regulate cryptocurrencies as securities without explicit congressional authorization are not only questionable but also potentially subject to legal challenge. The Major Questions Doctrine strengthens the argument that significant regulatory decisions should be entrusted to elected representatives, ensuring a democratic and balanced approach to the regulation of emerging technologies like cryptocurrencies. In conclusion, I urge the SEC to consider the application of the Major Questions Doctrine when regulating cryptocurrencies. Regulatory clarity, balanced with investor protection and support for technological advancement, is the key to fostering innovation and ensuring the United States remains competitive on the global stage. Thank you for your attention to this matter. I look forward to seeing the SEC's continued efforts to provide clear and balanced regulation in the cryptocurrency sector. Sincerely, Desly Hill