TechFlow news, according to apnews, the U.S. Supreme Court ruled on June 27 that the Securities and Exchange Commission (SEC) must provide defendants with the right to a federal jury trial in fraud cases, stripping the SEC of a key enforcement tool it had used in certain civil fraud complaints through internal proceedings. This ruling could have far-reaching implications for other regulatory agencies. The Supreme Court decided 6 to 3 that the SEC's internal procedures violate the Constitution.
The SEC collected over $5 billion in civil penalties during fiscal year 2023, though it remains unclear how much came from internal proceedings versus federal court litigation. This case is part of a broader effort by conservative and business interest groups to limit the power of federal regulatory agencies.
