Supreme Court Contemplates Limiting SEC's Power in Landmark Case
The Supreme Court's conservative majority expressed skepticism about the Securities and Exchange Commission's (SEC) use of in-house legal proceedings to discipline those accused of fraud, with concerns raised about the violation of the Seventh Amendment right to a jury trial and the encroachment on executive branch prerogatives. The arguments highlighted the ongoing tension between conservatives, who believe the power of federal agencies has curtailed individual rights, and liberals, who argue that Congress should be trusted to delegate authority to address complex problems. The court also grappled with a 1977 precedent that affirmed the powers of administrative hearings, with Justice Elena Kagan asserting that Congress should decide how to solve problems and whether administrative agencies are appropriate. The case could have implications for administrative law judges across the federal government.