Manatt Consumer Financial Services Leader Scott Pearson was quoted in Law360 about how overturning the Chevron deference may impact the financial regulatory space.
According to the article, without the Chevron deference, financial regulators may find it more difficult to defend rules, especially as litigation against the current administration’s financial regulatory agenda grows. Companies no longer have this deference obstacle “in any case involving an interpretive decision by a regulatory agency,” Pearson said. “Chevron made it more challenging to prevail, but now that disincentive for trade groups or affected companies to bring challenges in the first place is gone.” The end of Chevron deference may bring new challenges against the current administration, he continued, but could also create complications for future administrations to change rules regardless of their political affiliation.
Read the full article here.