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SCOTUS Ruling on SEC Severely Curtails Power of U.S. Agencies to Fine Violators

HeadlineJun 28, 2024

The Supreme Court’s right-wing supermajority ruled in a 6-3 decision that the Securities and Exchange Commission cannot use administrative law judges to assign penalties to violators, who must instead be granted a jury trial. The ruling sets a precedent that severely curtails the power of the federal government to impose fines for violations across a range of agencies. In a scathing dissent, Justice Sonia Sotomayor called the ruling a “power grab” that will have “momentous consequences.” She wrote, “The constitutionality of hundreds of statutes may now be in peril, and dozens of agencies could be stripped of their power to enforce laws enacted by Congress.”

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