The Supreme Court today stripped the Securities and Exchange Commission (SEC) of a major tool in fighting securities fraud in a decision that also could have far-reaching effects on other regulatory agencies, the Associated Press reports.
The justices ruled in a 6–3 vote that people accused of fraud by the SEC, which regulates securities markets, have the right to a jury trial in federal court. The in-house proceedings the SEC has used in some civil fraud complaints violate the Constitution, the court said.
The case is among several this term in which conservative and business interests are urging the nine-member court to restrict federal regulators.
