TechFlow reported that 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, depriving the SEC of the key enforcement tool of using internal procedures in certain civil fraud complaints. This ruling may have a far-reaching impact on other regulatory agencies. The Supreme Court made this decision with a vote of 6 to 3, believing that the SEC's internal procedures violated the Constitution.
The SEC collected more than $5 billion in civil penalties in fiscal 2023, but it is unclear how much of that came from internal proceedings or federal court lawsuits. The case is part of a push by conservative and business interest groups to limit the power of federal regulators.
