Loper Bright, Jarkesy, And Implications For The SEC

"Chevron is overruled," Chief Justice Roberts wrote in Loper Bright Enterprises v. Raimondo, because "[t]he deference that Chevron requires of courts reviewing agency action cannot be squared with the [Administrative Procedure Act of 1946 (APA)]." The decision – described by Justice Gorsuch, concurring, as placing a "tombstone" on Chevron – was released the day after SEC v. Jarkesy, which prohibits the SEC from requiring the adjudication of fraud cases in which civil penalties are sought before Administrative Law Judges (ALJs). While Loper Bright's rejection of Chevron is likely to have a significant impact across federal agencies, the SEC has already largely implemented the changes required by Jarkesy. Both decisions evidence the Court's trend toward limiting the regulatory power of agencies including by minimizing the role of agency expertise in the evaluation and enforcement of regulations.