Supreme Court's Potential Rulings on Hedge Fund Managers, Financial Fraud Watchdog, and SEC's Power

The Supreme Court heard arguments in the case SEC v. Jarkesy, which focuses on whether defendants in SEC enforcement proceedings are entitled to a jury trial. While the Court's decision is likely to weaken the SEC's power to protect investors and diminish the government's ability to try complex cases, it is unlikely to result in a catastrophic attack on US state capacity. The case highlights the differences between administrative law judges and Article III judges, with the Court's Republican-appointed majority appearing eager to limit the use of administrative forums and shift power towards Article III courts. The Court is likely to rule in favor of Jarkesy, allowing his case to be heard by an Article III court with a jury trial, ultimately protecting hedge fund managers' rights over workers'.