02/13/2024

SEC’s ‘Gag Rule’ Denounced as ‘Occupational Death Sentence’

Some argue it's an unconstitutional requirement

A long-running battle over the Securities and Exchange Commission's (SEC) policy of muzzling defendants in enforcement cases is gaining new momentum in the courts, thanks to one of the biggest critics of federal regulatory power.

The New Civil Liberties Alliance, a conservative legal group that has been at the forefront in the clash over regulatory reach, is leading a pair of long-shot challenges looking to knock down the SEC's half-century-old policy of barring most defendants who settle with the agency from speaking out against the charges.

The effort is part of a broader attack by right-wing activists on the so-called administrative state that includes dozens of recent challenges to SEC rules and those of other agencies.

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