Overview
- The SEC rescinded its 1972 no-admit/no-deny condition that had barred settling defendants from publicly disputing the agency’s allegations.
- The agency said it will not seek to reopen past enforcement cases if former defendants now speak out against the claims they settled.
- Regulatory records show the rescission listed as a final rule under White House budget office review, a step that typically precedes Federal Register publication.
- Companies and individuals can now resolve a case and still explain their version of events to investors and the public, which could spur extended disputes after settlements.
- Supporters, including Chair Paul Atkins and the American Securities Association, call the change a free speech fix, while Better Markets criticized the SEC for acting without first taking public comment.