Supreme Court claws back SEC’s enforcement powers

The Supreme Court clawed back the Securities and Exchange Commission’s (SEC) powers Thursday by invalidating the agency’s internal system used to seek civil fraud penalties. 

The 6-3 decision along ideological lines rules unconstitutional the SEC’s in-house administrative courts, a key tool it has leveraged in enforcing securities laws. The Biden administration has warned such an outcome would threaten agencies across the federal government that use similar setups.

Chief Justice John Roberts...