{"id":2119440,"date":"2023-12-08T06:41:01","date_gmt":"2023-12-08T11:41:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/could-sec-v-jarkesy-be-the-scotus-case-that-brings-down-the-administrative-state\/"},"modified":"2023-12-08T06:47:49","modified_gmt":"2023-12-08T11:47:49","slug":"could-sec-v-jarkesy-be-the-scotus-case-that-brings-down-the-administrative-state","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/could-sec-v-jarkesy-be-the-scotus-case-that-brings-down-the-administrative-state\/","title":{"rendered":"Could SEC v. Jarkesy Bring Down the Administrative State?"},"content":{"rendered":"

18<\/div>SHARES<\/span><\/div>

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Last Friday, the U.S. \u200cSupreme Court heard arguments for Securities and Exchange Commission v. Jarkesy, \u2064which challenges the authority of the administrative state.<\/h2>\n
\n
The defendant is George Jarkesy, a \u200b conservative \u2063radio host<\/a> who was fined \u2064over half-a-million dollars<\/a>\u2064 by the SEC \u200dfor allegedly defrauding investors<\/a> and appealed this sentence \u2063by arguing \u200bthat the SEC does\u200c not have the constitutional authority to do\u200d this.<\/p>\n<\/blockquote>\n
Jarkesy’s Three Arguments<\/h3>\n
\n
The SEC is violating the Seventh Amendment,\u200b which guarantees a trial\u200b by jury.<\/li>\n
The SEC doesn\u2019t have the authority to\u2062 adjudicate these \u2062matters since it\u2019s an\u2063 executive agency, not a federal\u200c court.<\/li>\n
The SEC judges are unfairly protected\u200d from serious political and legal accountability.<\/li>\n<\/ul>\n
All these arguments add up to condemn the administrative state as a\u2064 whole, \u200cwhich Jarkesy\u2019s team claims \u201cis effectively rigged against \u2062virtually every defendant that\u2063 goes before \u200dan \u2063ALJ\u200c [administrative law judge].\u201d<\/p>\n
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<\/div>\n<\/div>\n
<\/div>\n
Based on Supreme Court\u2063 justices\u2019 questioning (specifically those appointed by Trump), Jarkesy\u2063 may be actually successful in winning \u2064his case.<\/p>\n
According to a report from The \u200dNew York Times, Justice Kavanaugh\u200c took issue\u2064 with the\u200c fact \u200dthat the SEC \u200dis\u200c basically acting as the judge, jury, and \u2062executioner; Justice Gorsuch pointed\u200b out \u2064the lack of accountability that results from no jury option; and\u200b Justice Coney \u200bBarrett was bothered by the \u2063blurriness between what counts \u200bas public and private\u2063 law.<\/p>\n
As \u200cfor the liberal justices and the SEC\u2019s legal team, \u2062they mainly argued that this is the way things have always \u200bgone, citing the precedents set by the Chevron doctrine (which delegates\u200b legal authority to executive agencies) and Atlas Roofing Co. v.\u200b Occupational Safety and\u200d Health Review Comm\u2019n (a 1977 case that\u2064 reinforces the Chevron\u200c doctrine). Sotomayor\u200b said changing the existing order\u2063 would be \u201cdramatic,\u201d and Kagan noted \u200cthe \u200b\u201cchutzpah\u201d of the\u2064 defendant\u2019s claims.<\/p>\n
Frankly, writers of the pro-government left<\/a>\u200c seemed to make a more spirited (albeit more logically fallacious) case against Jarkesy.<\/p>\n
In an Atlantic\u200c article provocatively entitled, \u201cThe Case that Could Destroy the Government,\u201d Noah Rosenblum expresses how the left really feels about all this: Basically, right-wing yahoos are\u200b using fringe constitutional theory \u200bto\u2063 overturn what we generally \u200dknow as \u201cthe government.\u201d<\/p>\n
Rosenblum goes on to explain that\u2063 the SEC needs to have this authority to \u2062continue\u200d doing its job of keeping investors\u2062 safe from swindlers like Jarkesy.<\/p>\n
Congress and the courts are simply too busy and not\u2062 sufficiently specialized in\u200b administrative statutes to handle the problems of market manipulation.<\/p>\n
In \u200bso many words, he maintains that the idea of checks and balances and the Bill \u200cof Rights \u200dinhibit \u201ceffective government.\u201d<\/p>\n
<\/div>\n
After \u200cdismissing originalist jurisprudence as \u201cborn in sin\u201d since \u2062it was supposedly implemented to defend racial segregation, \u2064Rosenblum \u200bconcludes his essay by asserting\u2063 that \u201cthe consequences \u2064of\u2063 Jarkesy\u2019s success would \u200bbe disastrous, especially for the American economy.\u201d<\/p>\n
For\u200d him, regulators like those in the SEC are the final\u200b line of defense against \u2062certain chaos threatening all areas of\u200b American life.<\/p>\n
Ignoring the alarmism, Rosenblum\u2019s reasoning somehow combines\u2064 naivety and cynicism into an incoherent yet typically leftist argument.<\/p>\n
The cynical aspect is that he\u200b confuses the\u200b whole government with an executive agency.<\/p>\n
This means that\u2064 instead of protecting the rights of its citizens, as is explicitly stated in the Declaration of Independence, the government exists to tell its citizens what to \u2062do and how \u2062to do it.<\/p>\n
If\u200c the government is prevented from doing this, then \u200cAmericans will automatically degenerate into savages\u2062 and resort to harming one another in every way \u2062possible.<\/p>\n
The naive aspect is that he \u200bassumes that\u200c executive agencies are actually neutral, trustworthy, and \u2063competent.<\/p>\n
Whether it\u2019s the SEC,\u200c IRS, or the FBI, their \u2064agents \u200care professionals with \u200da heart of gold.<\/p>\n
They could\u2063 never be corrupted with unbridled authority or gargantuan budgets.<\/p>\n
They would\u200b never target specific Americans, \u2063conduct political witch hunts, or neglect\u2063 their actual responsibilities.<\/p>\n
Of course, both of \u200bthese premises are ridiculous.<\/p>\n
As Sohrab Ahmari details in his recent book Tyranny \u200dInc., it is quite possible \u2063to\u200d have a tyrannical system exist under the guise of technocratic economic governance.<\/p>\n
The problems that he sees with corporate arbitration \u2014 the private judicial process \u2063for\u200d employees with a grievance \u2014 are the \u2064same as the ones with ALJs at the \u2064SEC: \u201ca vast parallel court system where\u2063 powerful interests get to tailor the rules to their advantage, dominate weaker\u200d actors, and ultimately close off access to justice.\u201d<\/p>\n
This explains \u200bthe fact, cited by Jarkesy\u2019s lawyers, that \u201cthe agency had \u200dwon the last 200 times\u201d before \u201cJark <\/p>\n
What\u200c are the three arguments presented \u2062by Jarkesy’s team in their case against the SEC?<\/h2>\n
T\u2063 Jarkesy’s case is just another attempt by conservatives to dismantle the \u2062government \u200band undermine\u2063 its\u200b authority.<\/p>\n
This article highlights\u200b the ongoing legal battle<\/a> between conservative radio host \u2062George Jarkesy and the Securities and Exchange Commission (SEC). Jarkesy was slapped with a \u200dhefty fine by\u200c the SEC for allegedly defrauding investors, but he appealed the sentence \u200don the grounds that the SEC lacks the constitutional authority \u2064to do so.<\/p>\n
Jarkesy’s team \u200bpresents \u200bthree arguments\u2064 in \u2063their case. Firstly, they claim \u200bthat the SEC is\u2064 violating the Seventh Amendment,\u2063 which guarantees a \u200btrial by jury. Secondly, they argue that the SEC,\u200d being\u2064 an executive agency\u200c and not a federal\u2064 court,\u200b does not have the authority\u2062 to adjudicate these matters. Lastly, they argue that the SEC judges are unfairly protected\u2062 from political and legal accountability.<\/p>\n
These arguments, taken together,\u2064 condemn the administrative \u200bstate as a whole, alleging that it is \u200crigged\u2062 against\u200c defendants that appear\u2064 before administrative \u2062law judges (ALJs). Notably, based on \u2062the Supreme Court justices’ questioning, Jarkesy might \u200dhave a chance \u2064at winning\u2062 his case, especially\u2062 with the support of justices appointed by Donald Trump.<\/p>\n
Justice Kavanaugh raised concerns \u2063about the SEC’s \u200drole as judge, jury,\u200c and executioner, while Justice \u2064Gorsuch criticized \u200cthe lack of accountability due to the absence of\u200d a jury option. Justice Coney Barrett also\u200b expressed concerns\u2062 about the blurred line between public \u2062and private law.<\/p>\n
On the other hand, the \u2063liberal justices and\u200d the SEC’s legal team argued in favor of maintaining\u200b the current system, citing precedents set\u200d by the Chevron doctrine and the Atlas Roofing Co. \u2063v. Occupational Safety \u2064and Health Review \u200bComm’n \u200dcase. They\u200c emphasized that changing the existing\u2063 order would be\u200d dramatic and criticized the defendant’s claims.<\/p>\n
However, the\u200b pro-government left\u2062 seemed to make a stronger (yet logically fallacious) case against Jarkesy. An article in The Atlantic titled “The Case that Could Destroy the Government” suggests that\u200c conservatives are trying\u2064 to overturn the government using fringe constitutional theories. The article argues that \u2063the SEC needs the authority to\u200c protect investors from fraud, as \u200dCongress and the \u2063courts lack the expertise in \u2062administrative statutes \u200drequired to\u200d handle such issues.<\/p>\n
The article concludes \u2063by dismissing originalist \u200djurisprudence and asserting that Jarkesy’s case is \u200bjust another\u2063 attempt by conservatives to dismantle the government \u200band hinder its effectiveness. Ultimately, this \u2064case poses important questions\u200b about the authority\u2064 of administrative \u200cagencies and the balance between government power and individual rights.<\/p>\n","protected":false},"excerpt":{"rendered":"
Last Friday, the U.S. Supreme Court heard arguments in SEC v. Jarkesy, questioning the administrative state’s power. George Jarkesy, a conservative radio host, appealed his half-a-million dollar fine for alleged investor fraud, challenging the SEC’s authority<\/p>\n","protected":false},"author":551,"featured_media":2119442,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[],"class_list":["post-2119440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2119440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/551"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2119440"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2119440\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2119442"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2119440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2119440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2119440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}