I continue to think that there is a live possibility that, in the not too distant future, the Supreme Court will rule that the SEC has no power to make rules, and all of its rules are invalid. But not today. The court ruled that Jarkesy had a constitutional right to a jury trial, and stopped there: “We do not reach the remaining constitutional issues and affirm the ruling of the Fifth Circuit on the Seventh Amendment ground alone.”

In some sense I would count this as a victory for the SEC. Oh, sure, it lost, but it was definitely going to lose. This is a relatively narrow loss: It can’t seek fines in its in-house courts, but its basic system of rulemaking survives. For now. Still, Justice Sonia Sotomayor wrote in her dissent: “Today’s decision is a massive sea change. Litigants seeking further dismantling of the ‘administrative state’ have reason to rejoice in their win today, but those of us who cherish the rule of law have nothing to celebrate.”

Source: Jarkesy