The U.S. Supreme Court's recent decision in the Chevron case will reshape the country's regulatory landscape. 

This is according to Michael Skelton, the president and CEO of the Business & Industry Association.

Skelton provides his thoughts on the effect that the Chevron decision will have in an opinion piece that he published on Friday, titled, Chevron decision will reshape U.S. regulatory landscape. 

Before we get to what Skelton has to say, though, we'll quickly catch you up to speed, in case you are not familiar with the Chevron ruling.

The decision

The justices of the Supreme Court issued the decision towards the end of June 2024. It was a 6 to 2 ruling - Justice Ketanji Brown Jackson sat this one out.

Fox News reported on the specific ruling of the case, which was that "the federal rule promulgated by the National Oceanic and Atmospheric Administration (NOAA) requiring the fishermen to pay $700 a day for an 'at-sea monitor' is out of the bounds Congress set for the federal agency."

The case, however, is expected to have an impact on more than just fishermen.

Fox goes on to explain:

The court's decision overruled what is known as the Chevron doctrine — a legal theory established in the 1980s that says if a federal regulation is challenged, the courts should defer to the agency’s interpretation of whether Congress had granted it authority to issue the rule, as long as the agency's interpretation is reasonable and Congress had not addressed the question directly.

This is a big deal.

Here's why:

According to Skelton, "The U.S. Supreme Court’s recent decision overturning the 'Chevron deference' precedent represents a major shift in the regulatory landscape for businesses, especially manufacturers, going forward."

Skelton went on to explain the impact that Chevron had on business. Basically, it led to more regulation, including lots of ambiguous rules, that stifled development.

"A steady rise in regulations included a problematic increase in ambiguous rules requiring frequent gray-area interpretations by agencies," he writes, later adding, "Businesses need to know their legal obligations in advance, and those that change by the year have a chilling effect on productivity, investment and innovation."

Now, however, the Chevron doctrine is history and, along with it, the problems that it caused.

"Business leaders are not adversarial, but do prefer limited and focused regulations that are achievable without impractical financial burdens. A pragmatic regulatory framework allows companies and industries to thrive and grow," Skelton writes.