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Supreme Court curbs SEC powers to enforce securities laws
PUBLISHED THU, JUN 27 202410:21 AM EDTUPDATED 1 MIN AGO

WASHINGTON — The Supreme Court on Thursday put new limits on the power of the Securities and Exchange Commission to enforce securities laws — the latest ruling in a series of cases that take aim at federal agencies.

The court ruled 6-3 that adjudication of cases by in-house judges violates the right to trial by jury.

The case is one of several on the docket involving conservative and business-led attacks on the power of federal agencies. The court’s 6-3 conservative majority is often sympathetic to such arguments.

The challenge zeroed in on how the SEC enforces securities laws, including those prohibiting insider trading. The SEC has long used in-house proceedings presided over by administrative law judges. The agency can also sue in federal court. In both sets of proceedings, it can seek financial penalties.

Those subject to the in-house adjudication have complained, saying the process violates their rights and gives the SEC too much power by essentially creating a home-court advantage.

More from NBC News:

https://www.cnbc.com/2024/06/27/supreme-court-curbs-sec-powers-to-enforce-securities-laws.html