The Supreme Court reined in the federal administrative state in two major cases Thursday, declaring the SEC could not deprive securities fraud defendants of a jury trial and the EPA could not impose new pollution roles without congressional blessing.
In the case related to the Security and Exchange Commission, whose primary mission is to protect the investment markets and its investors, the high court stripped the federal agency of a major tool in fighting securities fraud, according to the Associated Press.
The justices in a 6-3 ruling said people accused of fraud by the SEC 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 also said, the wire service also reports.
In the case regarding the Environmental Protection Agency, the court temporarily blocked the federal agency’s “Good Neighbor Plan,” drafted to ensure compliance with the 2015 Ozone National Ambient Air Quality Standards law.