Tomorrow, the Supreme Court will consider Securities Exchange Commission v. Jarkesy, a broad challenge to the SEC’s authority to use agency adjudication to enforce securities laws. This is one of several important administrative law cases before the Court this term and may receive the most attention. Jarkesy raises three questions about the constitutionality of administrative adjudication at the SEC, all of which were ruled against the agency by the U.S. Court of Appeals for the Fifth Circuit. Jarkesy’s case argues that agencies should be required to enforce their rules in federal court. If Jarkesy prevails, this will require significant changes in the operations of some federal agencies. Christopher Walker and David Zaring have suggested allowing defendants the option of removing SEC enforcement actions to federal court as a potential resolution. It will be interesting to see whether the Court, Congress, or the SEC will address these issues.

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