For over 50 years, the Securities and Exchange Commission (SEC) enforced a rule compelling individuals and companies settling enforcement cases to remain silent about their own situations. While the SEC could publicize its allegations, settling parties were prohibited from sharing their side of the story, even if no court had substantiated the claims. This "gag rule" was criticized for undermining the agency's mission of full and fair disclosure, which is intended to protect investors.

This spring, amidst a constitutional challenge reaching the Supreme Court and supported by 16 friend-of-the-court briefs, the SEC rescinded this long-standing policy. The timing of the rescission, with the Supreme Court poised to consider the case, suggests a strategic move by the agency. The rule's demise marks a significant shift in how the SEC handles enforcement settlements and the public's access to information regarding these cases.