U.S. Supreme Court’s ruling in Jarkesy securities fraud case could reshape SEC’s power to regulate cryptocurrencies

According to Mars Finance news, the U.S. Supreme Court is hearing a case that may change the enforcement methods of the U.S. Securities and Exchange Commission (SEC) and other relevant agencies. The case involves securities fraud charges against hedge fund founder George Jarkesy, who was accused of inflating asset prices to raise management fees for his funds. The SEC requested that the case be handled as an administrative proceeding rather than a judicial trial in federal court. Jarkesy appealed, claiming that the administrative proceedings violated the individual's right to a jury trial under the 7th Amendment. The appeals judges upheld his view, but the SEC held that the 7th Amendment only applied to cases involving public interest and not to cases involving public interest. If it were ultimately ruled that all administrative matters would be subject to jury trials, it would have broad implications for administrative agencies and federal courts. The SEC's current lawsuits against Coinbase, Kraken, and Binance are currently being heard in federal district courts rather than administrative proceedings, but the Supreme Court's handling of the settlements, which are common in the cryptocurrency space, could change things. However, legal experts cautioned those in the cryptocurrency industry not to have high expectations for the case at this stage; but whatever the court decides, it will be in line with the consistent theme of limiting the scope of the federal government’s power and checking and balancing the executive branch.