Washington DC – Steven Hall Better Markets’ Legal Director and Securities Specialist released the following statement in relation to the Supreme Court’s decision: Jahkessy v. SEC:
“This is a bad day for U.S. investors who rely on the SEC to enforce the law against securities market fraudsters and charlatans. The Supreme Court invalidated the SEC’s authority to petition an administrative law judge for enforcement actions, based on the view that the Constitution guarantees a right to a jury trial in common law cases. However, the SEC’s complaint is a statutory, not a common law, complaint brought by the government for fraud and other violations of law. It therefore concerns the enforcement of a ‘right of the public’ and is permitted as an exception to the jury trial requirement. This decision, a significant departure from long-established precedent, promises to upend the SEC’s enforcement program and further drain the SEC’s already strained resources. It also comes at a particularly bad time, given the rise of cryptocurrency investment schemes that require strong enforcement. It also raises serious questions about whether other agencies can use administrative law judges as an efficient and fair way to hold violators accountable.”
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Better Markets is a nonprofit, nonpartisan, independent organization created to advance the public interest in financial markets, support financial reform on Wall Street, and make the financial system work for all Americans again. Better Markets works with many allies, including the financial industry, to advance pro-market, pro-business, and pro-growth policies that help build a stronger, safer financial system that protects and promotes American jobs, savings, retirements, and more. For more information, visit www.bettermarkets.org.
