SEC Rescinds 54-Year-Old "Gag Rule" Restricting Settlement Denials on Monday

According to SEC Chair Paul Atkins, the U.S. Securities and Exchange Commission rescinded its 54-year-old "gag rule" on Monday, a rule that had barred defendants in enforcement settlements from publicly denying the agency's allegations. The SEC adopted the policy in 1972 and said it created the false impression that the agency was "trying to shield itself from criticism." Atkins stated the move brings the SEC in line with federal agencies that do not have similar restrictions and supports defendants' right to free speech.

Under the Trump administration, the SEC has settled or abandoned multiple high-profile crypto cases, most notably a $50 million settlement with Ripple Labs in May 2025. SEC Commissioner Hester Peirce backed the rescission, stating that "settlements shrouded in forced silence do not serve the markets or the Commission's investor-protection mission." The agency will not enforce existing no-deny provisions but may continue requiring some defendants to admit facts or liability when settling.