The Supreme Court returns to the so-called “administrative state” Wednesday, in a case that offers the conservative majority a fresh chance to pare back the authority of regulatory agencies and could potentially enhance presidential power.
The case involves the reach of the Securities and Exchange Commission – established in 1934 to protect investors and maintain orderly markets – but it could also impact other federal agencies depending upon how the justices view the dispute.
It’s one of several cases this term where the conservatives on the court are expected to take a hard look at the structure of government out of a belief that independent agencies unaccountable to the public have become too powerful, in violation of the separation of powers.
One aspect of the case – that will be decided by July in the heat of the presidential election – concerns the tenure of administrative law judges who can only be removed for cause, and not at the whim of the president. It comes as former President Donald Trump has suggested if he were reelected that he would want the authority to fire anyone who he believed was not following his direction.
The justices will be reviewing the latest controversial opinion from the 5th US Circuit Court of Appeals – one of the most conservative appellate courts in the country that covers Louisiana, Mississippi and Texas – where conservative litigants often file suit hoping for eventual Supreme Court review.
On the other side of the divide are those who are fearful of undermining the government’s regulatory powers out of a belief that an agency, with its vast subject matter expertise, is best suited to tackle complex issues in areas such as financial regulation, the environment and workplace protections.
Central to Wednesday’s dispute are the in-house enforcement proceedings of the SEC that consist of…
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