The Supreme Court agreed to consider the legality of the Securities and Exchange Commission’s use of in-house tribunals, setting up a decision next term that could alter how U.S. securities laws are enforced.
In an order list on Friday, the high court said it would hear the Biden administration’s appeal of a May 2022 lower-court ruling that found it unconstitutional for the SEC to bring enforcement actions seeking financial penalties through its in-house courts.
The Supreme Court’s eventual decision could restrict the SEC’s use of its in-house courts. Such proceedings are heard by administrative law judges who are employees of the SEC but are supposed to exercise independent judicial powers.
‘Enforcement 40’ for 2020
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