Supreme Court limits power of SEC to unilaterally enforce financial fraud regulations
The decision could have enormous consequences for the SEC and other agencies, requiring them to pursue violations in federal court rather than with a more streamlined internal review. That could make it harder to police fraud and protect investors while adding to federal court backlogs.
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A potential shift in policies may introduce complexities for the SEC and other regulatory bodies, escalating cases involving violations to federal court instead of an internal review, thereby complicating the fight against financial fraud and possibly jeopardizing investor protection. Exacerbating the situation, this changes might induce accumulation of backlog in federal courts.
