US Supreme Court Restricts SEC’s Power in Enforcing Securities Laws

  • The US Supreme Court found 6-3 that the SEC’s employment of in-house judges violates the right to trial by jury.
  • Crypto firms now have the right to jury trials in federal court, which might affect how the SEC pursues its proceedings against them.
  • The SEC may need to change its approach, which might cause delays in actions against the corporations.

Stay in the know on crypto by frequently visiting Crypto News Today

The United States Supreme Court has curtailed the Securities and Exchange Commission’s (SEC) jurisdiction to enforce securities laws. In a 6-3 judgment, the court found that the SEC’s employment of in-house judges to decide matters violates the constitutional right to a jury trial.

CryptoCaster Quick Check:

This is one of several cases on the docket featuring conservative and business-led challenges to the authority of federal agencies. The court’s 6-3 conservative majority has frequently been sympathetic to such claims.

The case focused on how the SEC enforces securities laws, especially bans on insider trading.

The SEC has traditionally employed in-house hearings overseen by administrative law judges, but it can also file cases in federal court and seek financial penalties in both settings.

Hedge fund manager disputes SEC

The controversy began with hedge fund manager George Jarkesy, who was charged by the SEC with violating securities laws by lying and concealing critical information from investors while managing two hedge funds.


The SEC’s in-house judges fined Jarkesy and his firm $300,000 and ordered them to refund approximately $685,000 in what the SEC deemed “illicit gains.” Jarkesy was also barred from certain positions in the securities business.

Jarkesy claimed that the SEC’s internal process was unfair and violated his rights. His fight against the SEC was supported by billionaires Elon Musk and Mark Cuban.

SEC headquarters in Washington D.C.

The SEC filed a petition with the Supreme Court after the 5th Circuit U.S. Court of Appeals in New Orleans ruled against it.


The Supreme Court ruled that anyone accused of fraud by the SEC are now entitled to a jury trial in federal court. Chief Justice John Roberts, speaking for the court’s conservative majority, stated:

“A defendant facing a fraud suit has the right to be tried by a jury of his peers before a neutral adjudicator.”

The SEC petitioned the Supreme Court after the 5th Circuit Court of Appeals in New Orleans ruled against it.

The Supreme Court ruled that individuals accused of fraud by the SEC now have the right to a jury trial in federal court. Chief Justice John Roberts, speaking for the conservative majority, said:

“For those and countless other agencies, all the majority can say is tough luck; get a new statute from Congress.”

What this means for the crypto sector

Crypto firms facing SEC enforcement actions will now be able to seek a jury trial in federal court rather than going through the SEC’s in-house administrative proceedings.

This reform may level the playing field for cryptocurrency enterprises, as they will no longer be subject to the biased internal SEC procedure. The SEC may need to rethink its enforcement techniques, perhaps causing delays in taking cases against cryptocurrency companies.

High-profile cases involving businesses such as Ripple, Binance, and Coinbase may be impacted, necessitating review or transfer to federal courts.

Federal judges may use higher standards when considering SEC enforcement actions, perhaps resulting in more dismissals or favorable verdicts for cryptocurrency companies.

Cryptopolitan revealed earlier today that Coinbase has filed a lawsuit against the SEC and the FDIC for unfair treatment of the cryptocurrency business.

For years, the SEC has been antagonistic against cryptocurrency startups. Coinbase and the rest have just received more ammunition in the war.CRYPTOCASTER® - DECENTRALIZED FREEDOM!


e hope you enjoyed this article. Before you move on, we invite you to consider supporting CryptoCaster’s journalism.

Billionaire owners like Elon Musk, Larry Fink (BlackRock), and Jamie Dimon (JP Morgan Chase) often have a strong influence on the hidden agendas surrounding the paradigm shift brought about by cryptocurrency and emerging Web3 technologies. CryptoCaster stands apart. We have no billionaire owner or shareholders to please. Our journalism is dedicated to serving the public interest in crypto development and institutional disruptions, not profit motives.

We avoid the pitfall of much U.S. and global media, which often resorts to false equivalence in the name of neutrality and retail consumer protection. While fairness and transparency guide everything we do, we recognize that there is a right and wrong stance in the fight against fiat global banking interests and the monetary reconstruction driven by the emerging crypto ecology.

When we report on issues like the FTX, Binance, and Ripple crises, we’re not afraid to name names and uncover the truth. As a crypto sentinel, we offer a fresh, outsider perspective on global monetary disruption—something often missing from the insular American and European media bubble.

CryptoCaster’s paywall-free journalism is accessible worldwide thanks to our unique reader-supported model. This is made possible by readers like you. Your support keeps us independent, free from outside influence, and accessible to everyone, regardless of their ability to pay for news and information.

We are grateful for the ongoing monetary support from our readers. If you haven’t yet considered supporting CryptoCaster, please consider contributing just once from $1 or more in Bitcoin (satoshi) or Ether, or even better, support us monthly with a bit more. Scroll further down this page to find CryptoCaster’s wallet addresses.

Thank you.

Kristin Steinbeck
Editor, CryptoCaster

Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.

Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
MATIC – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
LITECOIN – ltc1qxsgp5fykl0007hnwgl93zr9vngwd2jxwlddvqt


You may also like