SEC’s Use of In-House Judges Cast in Doubt by Supreme Court
- Conservative justices signal jury trial is needed in SEC cases
- Dispute is one of several cases pushing back on federal power
The dispute is part of a Supreme Court term likely to have broad implications for federal regulators.
Photographer: Eric Lee/BloombergThis article is for subscribers only.
The US Supreme Court’s conservative majority cast doubt on the Securities and Exchange Commission’s use of in-house judges, hearing arguments in a case that could strip the agency of a key enforcement tool.
In a session that lasted more than two hours Wednesday, the justices suggested that people accused of fraud by the SEC have a constitutional right to go before a federal court jury, at least when the commission is seeking civil penalties.