Financial markets rely heavily on public trust and regulatory credibility. As these markets evolved, enforcement mechanisms once viewed as heavy handed came to be widely recognized as essential to preserving transparency and stability. One such mechanism is the Securities and Exchange Commission’s (SEC) long standing gag rule. The rule bars defendants who choose to settle an enforcement action from later publicly denying the allegations they resolved. The provision has existed since the 1970s and gained renewed constitutional significance in Powell v. Securities and Exchange Commission (2025), where the Ninth Circuit upheld its legality. The court emphasized a foundational principle of constitutional law by noting that, in proper circumstances, constitutional rights may be knowingly and voluntarily waived. This reaffirmed the constitutionality of limited and voluntary speech restrictions within settlement agreements. The ruling preserved the enforcement tool for the SEC and offered a broader point of reference for waiver doctrine across the administrative state.

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