Multiple cases on the docket could permanently change the federal administrative state.
With the U.S. Supreme Court slated to return to session on Jan. 8, the second part of the high court’s term could hand down rulings that either curb or expand the federal government’s powers—sometimes known as the administrative state.
Analysts have said that three cases that the high court is hearing related to the federal bureaucracy this term, including the Consumer Financial Protection Bureau (CFPB) v. Community Financial Services of America, the Securities Exchange Commission (SEC) v. Jarkesy, and Loper Bright Enterprises v. Raimondo.
SEC v. Jarkesy
Hedge fund manager George Jarkesy was penalized by the SEC for violating securities fraud law, which he appealed. The U.S. 5th Circuit Court of Appeals sided with the plaintiff, arguing in a ruling that the SEC violated the Constitution’s Seventh Amendment, which provides the right to have a jury trial, and it also found that Congress engaged in overreach by delegating its own power when allowing an agency—in this case, the SEC—to hold administrative proceedings rather than file a lawsuit in a civil court against Mr. Jarkesy.
