Supreme Court Ruling Alters SEC's Fraud Penalty Process

The decision mandates jury trials for SEC-imposed monetary penalties, impacting federal agencies' enforcement abilities.

The ruling in SEC v. Jarkesy requires jury trials for SEC cases seeking monetary penalties.
Chief Justice Roberts emphasized the Seventh Amendment's right to a jury trial in common-law suits.
Justice Sotomayor's dissent warns of significant disruptions to federal administrative functions.
The decision could affect numerous federal agencies, including the FDA, EPA, and FCC.
Future challenges to administrative enforcement are expected, complicating regulatory actions.