SEC Ends Decades-Old ‘Gag Rule’ in Enforcement Settlements (1)

Companies and individuals making deals to settle Securities and Exchange Commission cases no longer have to remain silent after the settlements, the regulator said Monday.

The update rescinds a decades-old policy that lets companies and individuals settle enforcement actions without admitting wrongdoing if they agree not to later dispute the allegations.

In place since 1972, the so-called “gag rule” has drawn criticism that the agency takes away defendants’ First Amendment rights. SEC targets like Elon Musk and Mark Cuban have spoken out against the policy and supported attempts to end the rule. The SEC in 2024 rejected a petition to ...