Law

SEC's New Court Powers Aren't Going Away

Appeals court seems likely to say Dodd-Frank penalty system is constitutional.

Not your traditional courthouse.

Photographer: Joshua Roberts/Bloomberg

Should the Securities and Exchange Commission be allowed to act as prosecutor, judge and jury in pursuing civil penalties against alleged violators of the security laws? If you think the answer is yes, you can only be heartened by Tuesday's decision by the U.S. Court of Appeals for the D.C. Circuit refusing to hear constitutional challenges to the SEC’s new powers under the Dodd-Frank Act.

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