In the Press
December 4, 2023

The US Supreme Court Could Reshape the Sec’s Powers — and How the Agency Approaches Crypto (Blockworks)

Professionals

A Supreme Court case could change the way the US Securities and Exchange Commission and other federal agencies bring enforcement actions — but legal experts warn the crypto industry not to hold its breath. Following a 2011 investigation, the SEC sued hedge fund founder George Jarkesy for securities fraud, alleging he inflated asset prices to boost his own management fee. By the SEC’s choice, the case was an “administrative proceeding,” a non-judicial process overseen by an administrative law judge instead of a federal court. “Some have suggested that Jarkesy might mark the end of the administrative state,” Andrew Kim, Appellate and Supreme Court Litigation partner, said to Blockworks. “Such sentiments are hyperbolic, to say the least. And it’s quite clear now that Jarkesy isn’t going to deal a death blow to either the SEC or the administrative state writ large. Regardless of how Jarkesy comes out, an Article III court will usually remain available to the SEC for enforcement proceedings."