Hester Peirce, a commissioner for the United States Securities and Exchange Commission (SEC), has expressed her disagreement with the agency’s denial of a petition to amend a rule that prevents defendants from denying any allegations in settlement enforcement actions. The gag rule is a part of the SEC’s policy adopted in 1972, which requires defendants to agree that they will not take any action or make public statements denying allegations in the complaints brought against them. In essence, the rule does not permit respondents to consent to a judgment or order that imposes a sanction while denying the complaint’s allegations; otherwise, the SEC can ask the court to vacate the settlement.
Source: Mandy Williams, 2024-02-04; https://cryptopotato.com/crypto-mom-disagrees-with-secs-denial-of-petition-to-amend-gag-rule/