U.S. Supreme Court Reins in Unconstitutional SEC Enforcement

Date: June 27, 2024

SEC v. Jarkesy concerns the constitutionality of the SEC’s enforcement proceedings

WASHINGTON, D.C. (June 27, 2024)NFIB commends today’s decision by the U.S. Supreme Court in the case Securities and Exchange Commission v. George R. Jarkesy, Jr. and Patriot28, L.L.C. The Supreme Court upheld the ruling of the Fifth Circuit that the Securities and Exchange Commission’s (SEC) in-house enforcement proceedings are unconstitutional. NFIB filed an amicus brief in the case with the Chamber of Commerce.

“NFIB is pleased that the Supreme Court upheld the lower court’s decision and ruled in favor of small businesses,” said Beth Milito, Executive Director of NFIB’s Small Business Legal Center. “Small business owners deserve fairness and accountability from the regulatory bodies whose actions impact their operations. This decision affirms the essential right to a jury trial outlined in the Constitution and will restore clarity and justice to the agency’s enforcement process.”

This case questioned the constitutionality of the SEC’s in-house enforcement proceedings. The agency’s enforcement actions denied respondents their Seventh Amendment right to a jury trial. With this ruling, the Supreme Court has prevented countless small businesses from being unconstitutionally penalized.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.

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