On May 18, 2026, the SEC rescinded its longstanding policy, codified in Rule 202.5(e) of its informal rules of procedures, that conditioned settlement of enforcement actions on a defendant’s agreement not to publicly deny the agency’s allegations. The rescission aligns the SEC with the majority of federal agencies that do not impose such a condition and gives the Commission more flexibility in settling enforcement actions. The SEC noted that there is no known instance of the Commission seeking to reopen a proceeding as a consequence of a defendant violating a no-deny provision. The Commission also stated it will not enforce existing no-deny provisions that have already been entered.

The SEC’s press release is available here.