“This very bold, radical, activist decision to hold unconstitutional provisions of a New Deal-era administrative agency’s enforcement regime has potential implications across the government,” said Catherine Fisk, a law professor at University of California-Berkeley. “It’s staggering.”
The ruling dealt a blow to the federal agency enforcement powers in the Fifth Circuit’s jurisdiction, which includes Texas, Louisiana, and Mississippi. It’s unclear whether the Biden administration will appeal to the full appeals court or the US Supreme Court, where a similar ruling would broaden the impact.
Source: Appeals Court Undercuts Agency Enforcement in SEC Fraud Case