Court Sensibly Split Politics and Market Regulation: Aaron Brown

Last week, the Supreme Court overturned a decades-old legal doctrine that gave federal regulators the power to interpret unclear laws. This touched off a lot of wild rhetoric about the end of the administrative state. My interest is how scrapping the Chevron ruling will affect financial regulation, but to get some necessary perspective we should start with history.

In the US, the modern administrative state is traditionally traced to the 1887 creation of the Interstate Commerce Commission in response to a public outcry over the conduct of the railroad industry. Over the next 90 years, federal agencies grew in number, ...