Crypto Companies Push High Court Doctrine Despite Terra Setback

Coinbase Inc. and other crypto companies appear to be sticking with the US Supreme Court’s major questions doctrine when fighting securities regulators, despite the argument failing its first court test.

Crypto companies targeted by the Securities and Exchange Commission have increasingly turned to the major questions doctrine in their defense. Under it, the justices have said agencies must have clear authorization from Congress for an action that has significant economic or political consequences.

The argument that crypto enforcement is a major question lost its first test last week, in a SEC lawsuit involving Terraform Labs Pte Ltd. Judge Jed Rakoff ...