The U.S. Securities and Exchange Commission (SEC) on Monday ended a longstanding policy that required people and companies settling allegations of wrongdoing to refrain from publicly denying the charges. The policy, in place since 1972, had been criticized by some conservatives as violating free speech rights.
"Speech critical of the government is an important part of the American tradition," said SEC Chair Paul Atkins in a statement. The change "ends the policy prohibiting such criticism by settling defendants," he added.
The SEC also stated it would not seek to reopen prior enforcement actions if defendants violated the no-deny provisions they had agreed to. The decision marks a further softening of the regulator's enforcement posture under President Donald Trump.
