This is not as big as you may think.
The case originated in 2011 and the ultimate constitutional problem in the agency was corrected in 2018 (how the administrative judges were appointed). So if this case had originated 2018 or later, it would’ve been handled differently from the get go and we would not have this ruling.
Also, it concerns the civil penalties imposed, not the administrative actions taken.
Basically, the constitutional rules as it applies to this case are:
1) The folks at the top of the adjudication chain in the agency must be appointable and removal by the president without requiring any particular cause.
2) If part of the charge against the defendant include charges typically handled in regular courts (like the fraud in this case), the defendant must ultimately be allowed to go to regular court for a jury trial if they want.
3) The statute granting authority to the agency must give clear guidance as to what they can do. Here, the SEC had no guidance as to how to decide if a case should be adjudicated internally or in regular court. The SEC had full discretion in that regard.
In an nutsell, as long as you can ultimately appeal to a regular court, you’re still able to be screwed by the regulatory apparatus.
The judge’s ruling in this case completely flew over your head. Zooom!
“Congress also unconstitutionally delegated power to the SEC to act as a legislative body, Elrod wrote.”