A federal appeals court has invalidated the U.S. Securities and Exchange Commission’s recently enacted rule concerning private fund advisers, ruling that the agency overstepped its statutory authority. The U.S. Court of Appeals for the Fifth Circuit concluded in a 3-0 decision that the SEC’s regulatory scope, established under the 1933 and 1934 Securities Exchange Acts, is primarily limited to public companies. This interpretation was upheld despite examinations during the 2008 financial crisis and the subsequent Dodd-Frank Act of 2010. For further details, refer to the original article.