Steadman v. Securities and Exchange Commission

Summary

The Court held that the Securities and Exchange Commission may determine violations in disciplinary proceedings under the securities laws using the preponderance-of-the-evidence standard. It concluded that the Administrative Procedure Act, read in light of its text and legislative history, establishes that standard for covered agency adjudications, and that Congress had authority to prescribe it. Justice Powell, joined by Justice Stewart, dissented, arguing that fraud allegations carrying severe sanctions should require clear and convincing evidence.