SEC Caves to NCLA's Eight-Year Legal Campaign, Rescinds Unlawful Gag Rule for Settling Defendants

SEC Caves to NCLA’s Eight-Year Legal Campaign, Rescinds Unlawful Gag Rule for Settling Defendants

Washington, D.C., May 19, 2026 (GLOBE NEWSWIRE) -- Just as the New Civil Liberties Alliance’s cert petition is pending at the U.S. Supreme Court in Powell, et al. v. SEC, the agency has announced it rescinded the policy yesterday after…

SEC Caves to NCLA's Eight-Year Legal Campaign, Rescinds Unlawful Gag Rule for Settling Defendants

Washington, D.C., May 19, 2026 (GLOBE NEWSWIRE) -- Just as the New Civil Liberties Alliance's cert petition is pending at the U.S. Supreme Court in Powell, et al. v. SEC, the agency has announced it rescinded the policy yesterday after more than 50 years. SEC's response brief in Powell is due at the Supreme Court on May 26. The timing of this action suggests SEC may be trying to avoid Supreme Court review of its unconstitutional "Gag Rule." SEC …

SEC bids goodbye to 'neither admit, nor deny'

Respondents in enforcement proceedings brought by the U.S. Securities and Exchange Commission (SEC) will now be able to settle cases without agreeing that they will not publicly deny the regulator’s allegations after settling. The SEC has rescinded its policy of requiring enforcement settlements to include an agreement by respondents that they will not continue to deny the allegations against them — a provision that has been a standard feature o…

SEC Ends Gag Rule Letting Firms Deny Settlement Claims

In place since 1972, the so-called “gag rule” has drawn criticism that the agency takes away defendants’ First Amendment rights.

SEC nixes 'gag rule' on enforcement action settlements

The Securities and Exchange Commission rescinded a policy Monday requiring defendants in settled enforcement actions not to publicly deny the SEC's allegations.