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Securities and Exchange Commission (SEC) Constitutional Challenges Securities Regulation

Venable LLP

Supreme Court Denies Certiorari to Decide FINRA Authority

Venable LLP on

On June 2, 2025, the Supreme Court denied a petition for writ of certiorari filed by Alpine Securities Corporation challenging a D.C. Circuit ruling granting only limited, preliminary relief to Alpine. Alpine argued that...more

A&O Shearman

Supreme Court Declines To Hear Constitutional Challenge To FINRA’s Enforcement Powers

A&O Shearman on

On June 2, 2025, the U.S. Supreme Court declined to hear a challenge brought by a member firm against the enforcement power given to the Financial Industry Regulatory Authority (“FINRA”). The Court’s decision to turn away...more

Katten Muchin Rosenman LLP

SEC Requests Stay of CAT-Related Class Action Proceedings

On June 11, the Securities and Exchange Commission (SEC) requested a stay of proceedings in a pending class action lawsuit challenging the SEC’s implementation of the Consolidated Audit Trail (CAT). The SEC’s rationale for...more

Shumaker, Loop & Kendrick, LLP

Client Alert: The Supreme Court Declines to Address Challenges to FINRA Enforcement Proceedings, and FINRA Proposes Rules to Avoid...

On June 2, 2025, the Supreme Court denied the petition for writ of certiorari filed by Alpine Securities Corporation in Alpine Securities Corp. v. Financial Industry Regulatory Authority. Interestingly, on the same day, the...more

Carlton Fields

U.S. Supreme Court Denies Alpine’s Petition Challenging Constitutionality of FINRA Enforcement Proceedings

Carlton Fields on

On June 2, 2025, the U.S. Supreme Court denied a petition for writ of certiorari filed by Alpine Securities Corp. in Alpine Securities Corp. v. Financial Industry Regulatory Authority. In doing so, the Supreme Court declined...more

Shumaker, Loop & Kendrick, LLP

Client Alert: FINRA Issues Administrative Order and Decision Regarding Alpine Sanctions

On March 25, 2025, the Financial Industry Regulatory Authority (FINRA) issued a 100-page Administrative Order and Decision confirming and modifying its sanctions of Alpine Securities Corporation, which include expulsion from...more

Allen Matkins

Issuer Retreats From Racial Share Allocation Scheme

Allen Matkins on

In February, I wrote about a proposed offering that involved a racially based share allocation scheme. Last month, it appeared that the offering was stalled at the Securities and Exchange Commission. Recently, the company,...more

Baker Donelson

Red Tape or Green Future? Unpacking California's Climate Disclosure Laws and the Pushback

Baker Donelson on

As the federal government works to roll back climate regulations and climate-focused initiatives, states are developing avenues to fill in the gaps left behind. In 2024, the Securities and Exchange Commission (SEC) adopted...more

Allen Matkins

Intentionally Discriminatory Public Offering Stalled At The SEC

Allen Matkins on

In this February post, I pondered the question of whether an issuer could allocate shares on the basis of race, gender or ethnicity.  That post was inspired by the case of  Glennon v. Johnson, U.S. Dist. Ct. Case No....more

Sheppard Mullin Richter & Hampton LLP

Trump Executive Order Requires Independent Agencies to Submit Regulations for Presidential Review

On February 19, 2025, President Donald Trump signed an executive order (the “Order”) mandating that independent agencies, including the SEC, the FCC, and the FTC, submit proposed regulations for presidential review before...more

Barnea Jaffa Lande & Co.

Court Ruling on SEC’s Crypto Regulation Approach: A Turning Point?

For years, the crypto industry has faced regulatory uncertainty, with the Securities and Exchange Commission (SEC) relying on “regulation by enforcement” rather than establishing specific rules for digital assets. Coinbase,...more

Carlton Fields

Piecing Alpine Together

Carlton Fields on

Is FINRA constitutional? According to the D.C. Circuit’s November 2024 opinion in Alpine Securities Corp. v. FINRA, FINRA proceedings may be unconstitutional in one narrow set of circumstances. ...more

Carlton Fields

Jarkesy May Reshape SEC Enforcement Against Professionals

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For decades, the SEC has relied on its in-house administrative proceedings to enforce alleged violations under the federal securities laws, including under its own rules of practice....more

Davis Wright Tremaine LLP

3rd Circuit Rules for Coinbase – Reasoned Analysis and Due Process Do Matter

On January 13, 2024, the U.S. Court of Appeals for the 3rd Circuit ruled on Coinbase's Petition for Review of the SEC's Order denying Coinbase's Petition for Rulemaking requesting that the Commission promulgate rules...more

Herbert Smith Freehills Kramer

Third Circuit Chides SEC for Terse Refusal To Engage in Crypto Rulemaking

On Jan. 13, 2025, a unanimous panel of the U.S. Court of Appeals for the Third Circuit held that the Securities and Exchange Commission (SEC or the Commission) violated the Administrative Procedure Act (APA) when it offered...more

Shumaker, Loop & Kendrick, LLP

Client Alert: FINRA’s Enforcement Arm Under Fire

Recent case developments in Alpine Sec. Corp. v. FINRA before the D.C. Circuit cast further uncertainty on the future of the Financial Industry Regulatory Authority (FINRA)’s enforcement arm....more

Ropes & Gray LLP

Third Circuit Coinbase Decision Pressures SEC on Crypto Rulemaking

Ropes & Gray LLP on

On Monday, the U.S. Court of Appeals for the Third Circuit issued the attached opinion requiring the SEC to provide a more complete explanation for its refusal to engage in formal notice-and-comment rulemaking regarding the...more

Carlton Fields

FINRA’s Sky Isn’t Falling (Just Yet)

Carlton Fields on

Is FINRA constitutional? Two cases currently playing out in D.C. federal courts, Alpine Securities Corp. v. FINRA and Kim v. FINRA, tee up that question. But the Financial Industry Regulatory Authority is an unusual target...more

Cranfill Sumner LLP

After Jarkesy, What Is Next for In-House Enforcement Proceedings?

Cranfill Sumner LLP on

Much virtual ink has been spilled in the weeks and months since the Supreme Court issued its opinion in Securities and Exchange Commission v. Jarkesy—much attesting to that the decision was the death knell for in-house...more

Jenner & Block

Client Alert: Latest Supreme Court Term Presents New Challenges for SEC

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The Supreme Court’s most recent term has forced the SEC to face new realities regarding its powers. As has been widely publicized, the Supreme Court’s overruling of Chevron in Loper Bright Enterprises v. Raimondo highlighted...more

Stoel Rives - Environmental Law Blog

SEC v. Jarkesy: In-House Adjudicators are Out and the Jury is In

Why do environmental professionals need to know about a recent securities case? Read on for details. In response to the Wall Street Crash of 1929, Congress passed the Securities Act of 1933, the Securities Exchange Act of...more

Steptoe & Johnson PLLC

Two U.S. Supreme Court Decisions Will Affect the Securities Industry

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The Supreme Court of the United States (SCOTUS) recently issued two opinions that are likely to have a longer-term effect on the way securities industry matters are handled. Juries, not the Securities Exchange Commission...more

Schwabe, Williamson & Wyatt PC

Civil Penalties Pivot to Federal Courts, Post-Jarkesy

The Supreme Court’s June 27 decision in Securities and Exchange Commission v. Jarkesy marks ‎a pivotal shift in administrative law, potentially limiting administrative adjudication of agency ‎enforcement across the federal...more

Womble Bond Dickinson

SEC v. Jarkesy: How Impactful Is It Really on the SEC’s Enforcement Program?

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In SEC v. Jarkesy, the Supreme Court held that the Seventh Amendment requires the U.S. Securities and Exchange Commission (“SEC” or “the Commission”) to litigate in federal district court when seeking civil monetary penalties...more

Venable LLP

Jarkesy: SEC Change-Up - The Supreme Court Curbs the Use of Administrative Courts for Litigated Fraud Claims and Civil Penalties

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In a landmark decision issued last week, SEC v. Jarkesy, the Supreme Court held that the Seventh Amendment guarantees a defendant a jury trial when the SEC seeks civil penalties against the defendant for committing securities...more

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