{"id":1075,"date":"2026-06-05T12:38:19","date_gmt":"2026-06-05T12:38:19","guid":{"rendered":"https:\/\/reliablemovingcrews.com\/?p=1075"},"modified":"2026-06-05T12:38:19","modified_gmt":"2026-06-05T12:38:19","slug":"us-supreme-court-backs-federal-regulators-in-wins-for-fcc-and-sec","status":"publish","type":"post","link":"https:\/\/reliablemovingcrews.com\/?p=1075","title":{"rendered":"US Supreme Court backs federal regulators in wins for FCC and SEC"},"content":{"rendered":"<div>\n<div>\n<div>\n<ul>\n<li>Summary<\/li>\n<li>Companies<\/li>\n<\/ul>\n<\/div>\n<div><\/div>\n<\/div>\n<div>WASHINGTON, June 5 (Reuters) &#8211; The U.S. Supreme Court in a pair of rulings backing the power of federal agencies has reaffirmed limits it previously imposed on government regulators but rejected bids by challengers to push those constraints into new territory.<\/div>\n<div>The court, which has a \u200b6-3 conservative majority, issued decisions on Thursday in two cases that went in favor of the Federal Communications Commission and Securities and Exchange Commission. It ruled against challenges \u200cto the FCC&#8217;s system for levying fines and the SEC&#8217;s broad power to recover illegal profits using a financial remedy called disgorgement.<\/div>\n<div>While the court in several major cases in recent years has embraced challenges to the so-called &#8220;administrative state&#8221; &#8211; the government bureaucracy that regulates many aspects of American business and life &#8211; the justices on Thursday stood squarely behind the authority of the two agencies.<\/div>\n<div>Georgetown University law professor David Super described the rulings as &#8220;small, largely technical wins&#8221; for the FCC \u200band SEC.<\/div>\n<div>&#8220;These cases should be understood as the court telling Congress and administrative agencies that, if they adhere to the rigid limits on public regulation in its prior decisions, the \u200bcourt will not come back and move the goalposts,&#8221; Super said.<\/div>\n<div>President Donald Trump&#8217;s administration defended the agencies in both cases.<\/div>\n<h2>A LOSS FOR AT&amp;T AND VERIZON<\/h2>\n<div>In the \u2060FCC case, the court ruled 8-1 in favor of the agency, rebuffing a challenge by wireless carriers AT&amp;T (T.N)<svg><\/svg><span>, opens new tab<\/span> and Verizon (VZ.N)<svg><\/svg><span>, opens new tab<\/span>. The case was the latest to test whether a federal agency&#8217;s internal enforcement arrangement \u200bviolates the constitutional right to a jury trial after the Supreme Court in 2024 curbed the power of in-house proceedings at the SEC in a case called SEC v. Jarkesy.<\/div>\n<div>The justices on Thursday rejected the \u200bargument by AT&amp;T and Verizon that the Jarkesy ruling should dictate a similar outcome in the FCC case.<\/div>\n<div>The court did, however, underscore that financial penalties issued by the agency, known as forfeiture orders, do not stop parties from bringing legal challenges to the agency&#8217;s fines.<\/div>\n<div>&#8220;The court didn&#8217;t take the opportunity to expand the reach of its prior decision in Jarkesy, but it also stressed that companies have no legal obligation to comply with the FCC&#8217;s forfeiture orders \u200buntil a jury weighs in,&#8221; University of Michigan Law School professor Daniel Deacon said.<\/div>\n<div>Deacon said he was not surprised by the outcome or that Trump&#8217;s administration had defended the agency&#8217;s power.<\/div>\n<div>&#8220;The Trump administration \u200bknows that it can use the administrative state for its own ends, and it hasn&#8217;t uniformly opposed agencies&#8217; claims to authority,&#8221; Deacon said.<\/div>\n<h2>DISGORGEMENT AUTHORITY<\/h2>\n<div>The court&#8217;s 9-0 ruling backing a broad reading of the SEC&#8217;s disgorgement authority buttressed one \u200cof the \u2060Wall Street watchdog agency&#8217;s key powers.<\/div>\n<div>At issue in the dispute was whether the agency must show that victims suffered economic harm, also known as pecuniary loss, before it can seek the surrender of illegal profits.<\/div>\n<div>A defendant named Ongkaruck Sripetch had asked the court to expand on one of its prior rulings, as he challenged a court order issued at the SEC&#8217;s request that required him to repay more than $3 million in ill-gotten gains and interest related to a financial fraud case. The 2020 ruling in a case called Liu v. SEC limited the scope of what can be sought via disgorgement to no \u200bmore than the net profits of the conduct \u200bat issue.<\/div>\n<div>On Thursday, the court said the \u2060Liu decision did not bolster Sripetch in his challenge to the SEC.<\/div>\n<div>Jose Lopez, an attorney at the law firm Dorsey &amp; Whitney and a former SEC lawyer, said the court&#8217;s ruling &#8220;preserved one of the SEC&#8217;s most potent weapons in its enforcement arsenal.&#8221;<\/div>\n<div>The court has reined in federal agencies in several key rulings.<\/div>\n<div>For \u200bexample, the court in recent years has formalized a conservative legal principle, called the major questions doctrine, that gives judges broad discretion to \u200binvalidate executive agency actions of &#8220;vast \u2060economic and political significance&#8221; unless it is deemed that Congress clearly authorized them.<\/div>\n<div>In another blow to federal regulatory power, the court in 2024 overturned a landmark 1984 precedent that had given deference to U.S. agencies in interpreting laws they administer. This doctrine, known as &#8220;Chevron deference,&#8221; had been long opposed by conservatives and business interests.<\/div>\n<div>Brianne Gorod, chief counsel at the Constitutional Accountability Center, a liberal legal group that filed briefs backing the SEC \u2060and FCC in \u200btheir cases, called Thursday&#8217;s rulings a win for the regulators and &#8220;everyone who benefits from these agencies being able to \u200bdo their jobs.&#8221;<\/div>\n<div>&#8220;While this court has a history of favoring big business interests and making it more difficult for federal government agencies to do their jobs, today&#8217;s decisions are a reminder that it&#8217;s not always possible to predict what this court will \u200bdo,&#8221; Gorod said.<\/div>\n<\/div>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=1073\">US Senate blocks debate on FISA surveillance law days before program \u2018goes dark\u2019<\/a><\/p>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=1071\">Drone crashes and severed fingers at a $13 billion Silicon Valley military startup<\/a><\/p>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=1069\">US appeals court to hear challenge to Trump\u2019s White House ballroom<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Supreme Court in a pair of rulings backing the power of federal agencies has reaffirmed limits it previously imposed on government regulators but rejected bids by challengers to push those constraints into new territory.<\/p>\n","protected":false},"author":1,"featured_media":1074,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[80,78,81],"class_list":["post-1075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-judiciary","tag-regulatory-oversight","tag-supreme-court-of-the-united-states"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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