Supreme court rules that the SEC’s in-house rulings violate US constitution

Court says that Securities and Exchange Commission’s administrative proceedings violate the right to jury trial

The US supreme court on Thursday stripped the Securities and Exchange Commission (SEC) of a major tool in fighting securities fraud in a decision that could have far-reaching effects on other regulatory agencies.

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.

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