The U.S. Supreme Court strips the SEC of a key enforcement tool, requiring defendants in fraud cases to be tried by a federal jury

ChainCatcher news, according to apnews, the U.S. Supreme Court ruled that the Securities and Exchange Commission (SEC) must provide defendants the right to a federal jury trial in fraud cases, stripping the SEC of a key enforcement tool used in certain civil fraud complaints through internal procedures. This ruling could have far-reaching implications for other regulatory agencies. The Supreme Court made this decision with a 6 to 3 vote, stating that the SEC's internal procedures violate the Constitution.

The SEC generated over $5 billion in civil penalties in fiscal year 2023, but it is currently unclear how much of that came from internal procedures or federal court litigation. This case is part of a push by conservative and business interest groups to limit the power of federal regulatory agencies.