In a long-awaited decision in the Jarkesy v. Securities and Exchange Commission case, the Supreme Court ruled that the SEC must bring all securities fraud enforcement in federal court when it seeks civil penalties, rather than in the agency’s own administrative tribunals in front of administrative law judges (ALJs) because the Seventh Amendment right to a jury trial applies.

While the results of the Jarkesy decision are yet to be seen, the application of the opinion itself is somewhat limited in scope. It does not undo any existing settlements or vacate any ALJ orders. However, it does prevent the SEC from seeking civil penalties in its own tribunals for securities fraud going forward.