U.S. Supreme Court Rules in Favor of Challenge to SEC's In-House Enforcement Proceedings in SEC v. Jarkesy: 6-3 Split Guarantees Jury Trial for Securities Fraud

Jun 27, 2024, 02:13 PM

The U.S. Supreme Court ruled in favor of a challenge to the Securities and Exchange Commission's in-house enforcement proceedings in the case SEC v. Jarkesy. The decision, with a 6-3 split, guarantees a jury trial for defendants facing civil penalties for securities fraud, limiting the SEC's power. Justice Sotomayor read her dissent from the bench, criticizing the conservative majority for endangering the separation of powers. The ruling is seen as a blow to federal agencies' authority and part of efforts to curb their power.