The SEC Is at the Mercy of the Courts at a Perilous Moment | TIME

In November, the Supreme Court held oral argument inSEC v. Jarkesy. The case deals with whether the agency’s adjudication of fraud claims using its own administrative law judges deprives individuals of their Seventh Amendment right to a jury trial. The justices were all somewhat aligned in skepticism against the SEC’s in-house enforcement practice, with Chief Justice John Roberts coming close to questioning whether the very existence of the SEC enforcement tribunal serves to undermine the Seventh Amendment. That doesn’t bode well for the agency.

A loss in Jarkesy would force the SEC out of its own backyard and into federal court more frequently—a considerably more expensive, time-consuming, and uncertain enforcement process. And while Jarkesy directly threatens the SEC’s authority to enforce, another case on the Court’s docket—set for oral argument on Wednesday—threatens the agency’s basic ability to function as it pleases.

Source: The SEC Is at the Mercy of the Courts at a Perilous Moment | TIME