The SEC faced multiple legal setbacks in the 2^nd quarter of 2024. As previously reported, in June 2024, the U.S. Court of Appeals for the Fifth Circuit issued its opinion that the SEC exceeded its statutory authority in adopting the Private Fund Rules, and the court vacated the entire final rulemaking. In late June, the U.S. Supreme Court ruled that the SEC must bring all securities fraud enforcement cases in federal court when it seeks civil penalties, rather than try the cases in the agency’s own administrative tribunals before administrative law judges (ALJs) because the Seventh Amendment entitles citizens to a jury trial for common law fraud. The SEC revamped its website (www.sec.gov) at the end of June to improve the site’s functionality and user experience. The refined website improves mobile usability and accessibility and was informed by web traffic analytics and user feedback.

We will continue to summarize SEC regulatory updates as posted on the SEC’s website. However, for readers who are interested in following SEC updates directly, we suggest focusing on information posted by the Divisions of Examinations, Enforcement, and Investment Management, under the Rules, Enforcement & Compliance section, as most relevant to our clients.