The SEC's Forgotten Power of Exemption: How the SEC Can Receive Deference in Favor of Internal Whistleblowers Even When the Text Is Clear
In 2008, the United States suffered its worst financial crisis since the Great Depression. This crisis was precipitated by corporate fraud committed by some of the largest Wall Street firms. Congress responded by passing the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) to improve accountability and transparency in the financial system. Recognizing the importance of whistleblowers in exposing corporate fraud, Congress included an anti-retaliation provision in Dodd-Frank, which was designed to protect whistleblowers from retaliation after coming forward with evidence of corporate wrongdoings. This Comment surveys existing case law to highlight how the SEC may still extend Dodd-Frank anti-retaliation protection to internal whistleblowers while conforming to Chevron and the recent Supreme Court ruling. The SEC can accomplish this by exempting internal whistleblowers from disclosing to the SEC. Ultimately, this Comment argues that the SEC can advance Dodd-Frank¿s goals of expanding whistleblower protections by exercising its forgotten general exemptive authority to protect internal whistleblowers, even if Dodd-Frank¿s text clearly requires disclosure to the SEC.
The SEC's Forgotten Power of Exemption: How the SEC Can Receive Deference in Favor of Internal Whistleblowers Even When the Text Is Clear,
Emory L. J.
Available at: https://scholarlycommons.law.emory.edu/elj/vol67/iss5/3