PRESS-RELEASE Powell-v.-SEC SEC-Rescinds-Gag-Rule
The New Civil Liberties Alliance (NCLA) issued a press release on May 19, 2026 announcing that the U.S. Securities and Exchange Commission (SEC) has administratively rescinded its long‑standing “Gag Rule,” a policy in place since 1972 that barred individuals who settled SEC enforcement actions from publicly criticizing those cases for the rest of their lives. The release frames the rescission as a response to NCLA’s eight‑year legal and advocacy campaign, which included petitions, multiple lawsuits, and a petition for certiorari in the Supreme Court case Powell v. SEC. While the SEC now states it will not enforce existing gag orders, the release warns that the agency could reinstate or enforce the rule in the future, underscoring the need for a definitive Supreme Court ruling. The statement includes remarks from NCLA senior counsel Peggy Little and President Mark Chenoweth, emphasizing the First Amendment significance and the necessity of judicial relief. Background information outlines NCLA’s 2018 petition, subsequent litigation, and the recent denial of a renewed petition in 2024. The release concludes with a brief overview of NCLA’s mission to protect constitutional freedoms from administrative overreach.
Topics
SEC’s Administrative Rescission of the 1972 Gag Rule
Details of the SEC’s decision to withdraw the policy that prohibited settled defendants from criticizing the agency, including the official press release language and the date of rescission.
NCLA’s Eight‑Year Legal Campaign Against the Gag Rule
Chronology of NCLA’s actions—petitions, lawsuits, appeals, and Supreme Court petition—aimed at overturning the gag rule, highlighting the organization’s persistence and strategy.
Pending Supreme Court Review in Powell v. SEC
Explanation of the certiorari petition filed by NCLA, the status of the Supreme Court’s pending decision, and the importance of a judicial ruling to provide lasting relief.
Risks of Future Reinstatement or Enforcement of the Gag Rule
Discussion of why the rescission may be temporary, including the SEC’s ability to reverse the decision, enforce existing orders, or re‑impose the rule without notice, underscoring the need for judicial protection.
NCLA Leadership Statements on First Amendment Impact
Quotes from Peggy Little and Mark Chenoweth praising the rescission while stressing that only a Supreme Court ruling can cement First Amendment rights.
Historical Background of the Gag Rule and Prior Litigation
Overview of the rule’s origin in 1972, its enforcement history, and the series of legal challenges NCLA has mounted since 2018.
About NCLA: Mission and Organizational Profile
Brief description of NCLA as a nonpartisan nonprofit civil‑rights group founded by legal scholar Philip Hamburger, focusing on limiting administrative overreach and protecting constitutional freedoms.