SEC Stays Administrative Proceedings
The Securities and Exchange Commission stayed its administrative proceedings in the wake of the Supreme Court’s decision in Lucia v. SEC, No. 17-13- (U.S. June 21, 2018). The Order stays the proceedings for “30 days or further order of the Commission.” The order was entered June 21, 2018.
The High Court’s decision raised a number of critical issues regarding the Constitutionality of the ALJs and the propriety of the order adopted by the Commission last November to try and remedy the flawed appointment process previously used in the wake of the Solicitor General’s decision to confess error in the Supreme Court. Those issues are in addition to the question resolved by the Court in Lucia. As detailed in a post dated June 25, 2018, the agency potentially faces years of litigation over the use of its administrative forum.