Supreme Court’s Jarkesy Ruling Upends SEC Enforcement Practices

The US Supreme Court’s ruling in Securities and Exchange Commission v. Jarkesy significantly shifts power from agencies to courts. It foreshadows a revolution in the structure of federal enforcement in the coming decade.

For many regulatory programs, this change will mean no enforcement at all for statutes that don’t allow the agencies to sue in court. Some people will applaud this change, because an Article III judge presumably has no policy agenda like the administrative adjudicators do.

Yet the decision also brings real costs. Litigation takes longer and is more expensive than administrative adjudication, so there will inevitably be fewer cases—and that is for the agencies that can bring enforcement lawsuits in courts, an authority Congress hasn’t granted across the board.

Source: Supreme Court’s Jarkesy Ruling Upends SEC Enforcement Practices