White House reviews SEC plan to end gag rule on settlements

The White House Office of Management and Budget is evaluating an SEC proposal to scrap its 1972 “no-admit, no-deny” policy, which currently prevents companies from publicly disputing the regulator’s narrative after settling enforcement actions. While this policy was intended to encourage settlements by avoiding costly litigation, critics, including figures like Elon Musk and Mark Cuban, argue it violates First Amendment rights. If the gag rule is overturned, companies—particularly those in the crypto industry—could publicly contest the SEC’s framing of events post-settlement. However, legal experts warn that this could lead to a 'narrative war' and potentially make the SEC less inclined to offer settlements, likely resulting in more frequent, prolonged court battles.

(Source：Crypto Briefing)