The US Supreme Court delivered a significant blow to the Securities and Exchange Commission (SEC) on Thursday, restricting its authority to impose civil penalties through internal adjudications.
In a pivotal 6-3 decision authored by Chief Justice John Roberts, the Court ruled that defendants facing SEC civil penalties are entitled to a trial by jury in federal court. This landmark ruling, which challenges the SEC's longstanding practice of using in-house judges for enforcement actions, has sparked heated dissent from liberal Justice Sonia Sotomayor, who accused the conservative majority of undermining Congress's regulatory authority.
