WASHINGTON, D.C.— Stephen Hall, Better Markets Legal Director and Securities Specialist, issued the following statement in connection with the Supreme Court’s decision in Jarkesy v. SEC:

“It’s a bad day for American investors, who depend on the SEC to enforce the law against fraudsters and con artists in the securities markets.  The Court has struck down the authority of the SEC to bring enforcement actions before administrative law judges, based on its view that the Constitution guarantees the right to a jury trial in actions at common law.  But the SEC’s claims are statutory, not common law claims, and they are brought by the government for fraud and other violations of the law.  Thus, they involve the enforcement of ‘public rights,’ a recognized exception to the jury trial requirement.  The decision, which sharply veers away from long-established precedent, upends the SEC’s enforcement program and promises a further drain on its already strained resources.  It also comes at an especially bad time, given the rise in crypto investment schemes that require vigorous enforcement.  And it also casts grave doubt on the ability of other agencies to use administrative law judges as an efficient but fair method of holding lawbreakers accountable.”

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Better Markets is a non-profit, non-partisan, and independent organization founded to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.