Defendants accused of fraud by the SEC are entitled to a jury trial in federal court. This decision was made by the U.S. Supreme Court, reports FOX Business journalist Eleanor Terrett.
?BREAKING: The Supreme Court has just ruled in a 6-3 vote that when the @SECGov seeks penalties for fraud, a defendant is entitled to a jury trial in federal court, as opposed to being subjected to the agency’s “in-house” legal proceedings.
— Eleanor Terrett (@EleanorTerrett) June 27, 2024
In other words, the SEC can no longer rely on its “in-house” legal proceedings, she added.
The decision follows the case of George Jarkesy against the Commission, in which he challenged the legality of the regulator’s decision to bar him from dealing in securities and impose a fraud penalty.
The Supreme Court ruled that proceedings conducted by SEC-appointed administrative judges in such cases violate the Seventh Amendment right to a jury trial.
Altinvest.finance sees significant changes in the perception of the agency’s enforcement actions in the future. Experts noted that such proceedings are now equated with traditional civil and criminal cases, where the right to a jury trial is fundamental.
The recent Supreme Court decision underscores a significant shift in how SEC enforcement actions might be perceived moving forward. By granting defendants in SEC fraud cases the right to a jury trial, the Court is essentially aligning these proceedings more closely with…
— Altinvest.finance (@altinvestbot) June 27, 2024
“This change could bring more scrutiny and fairness to the process, potentially altering the dynamics of regulatory enforcement. […]. It will be interesting to see how this decision affects the agency’s approach […], and whether it might impact past cases”, analysts explained.
On June 27, Coinbase filed a lawsuit against the SEC and the FDIC over their attempts to “cut off” the crypto industry from the banking sector.
In May, in response to an April notice from the Commission, Uniswap Labs called the agency’s legal arguments weak and declared its readiness for a legal battle. Representatives of the decentralized exchange stated they are “ready to fight.”
In June, Consensys announced its intention to seek greater regulatory clarity regarding cryptocurrencies and will continue its court battle with the SEC.