The U.S. Supreme Court is to decide a new limit on the SEC’s power that may undercut the federal agencies decision-making authority.
(Reuters) The U.S. Supreme Court on Friday agreed to hear a bid by President Joe Biden’s administration to defend certain Securities and Exchange Commission in-house enforcement proceedings in a case that could broadly undercut the power of federal agencies.
“The justices took up the administration’s appeal of a lower court’s decision that struck down certain SEC enforcement proceedings as unconstitutional for violating the right to a jury trial and infringing on presidential and congressional powers.
This case involves hedge fund manager George Jarkesy, who the SEC had fined and barred from the industry after determining he had committed securities fraud.”
The Supreme Court, which has a 6-3 conservative majority, has signaled skepticism toward expansive federal regulatory power, said Reuters.
Retail investors are questioning whether a limit on SEC power is the right course of action when hedge funds and market makers continue to take advantage of retail investors.
Organizations such as We The Investors have submitted more than 1,300 letters to the SEC supporting rules proposed in December that represent the biggest changes to equities trading in nearly two decades.
Retail investors have been pushing for market transparency ever since the ‘meme stock’ frenzy of 2021 but off exchange trading has only risen.
The news to limit the SEC’s power comes at the same time after Rep. Warren Davidson, R-Ohio, and House Majority Whip Tom Emmer, R-Minn have introduced the SEC Stabilization Act that would restructure the SEC and remove Chairman Gary Gensler from his post.
The Industry Wants Chairman Gensler Out
It was rumored that Chairman Gary Gensler had resigned though sources have now confirmed the story to be fake news.
Still, this is the second time Rep. Warren Davidson, R-Ohio has introduced a bill that would remove Chairman Gary Gensler from his post.
And many retail investors are on board with the idea of firing Gary Gensler.
However, a few point that nothing will really change with his removal, insinuating that the possibility of the markets getting worse is also there.
There is no guarantee how removing Chairman Gary Gensler from office will affect the markets or retail investors.
Though it may seem like the entire board needs replacing, there’s no guarantee the next commissioners in line will protect retail investors.
The conflicts of interest between Wall Street and regulators are big, but should the Supreme Court limit the SEC’s power?
What if the people elected commissioners?
There has to be other solutions, one where real positive change has the potential to actually take place.
Otherwise, the entire financial industry is just going in a never-ending circle.
Be sure to leave your thoughts in the comment section below.
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