Overview
- The SEC published a final rescission of Rule 202.5(e) and said it will not enforce existing no‑deny clauses, freeing past settling parties to speak publicly without agency action.
- The Commission made the change effective on publication and treated the rescission as an internal procedural policy that did not require APA notice‑and‑comment.
- The agency said the rule offered limited practical benefit, was hard to police in the social‑media era, and left the SEC out of step with most other federal agencies.
- The rescission does not remove the SEC’s ability to settle without admissions or to demand admissions in particular cases, so settlement leverage and negotiation tactics are likely to change.
- The move, announced on May 18, 2026, intersects with years of litigation over the policy and could affect pending challenges such as Powell v. SEC while shifting reputational and legal calculations for companies and individuals who face enforcement actions.