Supreme Court’s Conservative Justices Critical of SEC’s Enforcement Power

The liberal justices indicated that previous precedent already resolved the issue in the government’s favor.

The U.S. Supreme Court in Washington on June 30, 2023. Kevin Dietsch/Getty Images

The U.S. Supreme Court’s conservative justices seemed poised to rein in the power of the Securities and Exchange Commission (SEC) to bring enforcement action, in a case that could limit the reach of the administrative state.

During Nov. 29 oral arguments in the case, SEC v. Jarkesy, which involves three big questions about constitutional boundaries for administrative law courts used by federal agencies for enforcement action, the justices’ questions seemed to focus overwhelmingly on how those courts tried individuals without a jury.