Supreme Court Overturns Chevron Deference Rule SEC and Other Agencies Lose Legislative Authority under Ambiguous Regulations

News Flash: The United States Supreme Court has overturned the Chevron Deference doctrine by a vote of 6 to 3. This precedent, established in 1984, required federal judges to defer to “reasonable” interpretations of ambiguous congressional laws by federal agencies. When there is ambiguity or a regulatory gap in congressional legislation, it implies that the administrative agency responsible for implementing the law has been authorized to issue legislative rules to interpret its meaning. These legislative rules carry significant weight and should be respected by the courts, unless they are arbitrary, capricious, or clearly unlawful.