Key takeaways

• This week, the D.C. Circuit became the first federal appellate court to uphold the constitutionality of the SEC’s Administrative Law Judges.
• The Court held in Raymond James Lucia Cos. Inc. v. SEC that the SEC’s in-house judges do not exercise the level of “significant authority” that would require their appointment pursuant to the procedures outlined in the Appointments Clause of the Constitution.
• The ruling represents a major win for the SEC following several years of legal controversy over its administrative process.