No-Deny

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Big Win For Crypto: SEC Ends 50-Year “No-Deny” Rule

The U.S. Securities and Exchange Commission has gotten rid of a long-standing rule that prevented companies and individuals from publicly disputing accusations after reaching a settlement with the agency. The rule had been in place since 1972.

This change might allow cryptocurrency companies, such as Ripple, to be more transparent about their operations, even after reaching a settlement with the SEC.

SEC Removes “No-Admit/No-Deny” Rule

On May 18th, the Securities and Exchange Commission (SEC) announced it was getting rid of a rule that had been in effect for more than 50 years. Previously, this rule prevented individuals who reached settlements with the SEC from publicly disputing the agency’s allegations against them.

Previously, companies or people who reached a settlement with the SEC weren’t required to admit wrongdoing, but they also weren’t allowed to publicly deny the allegations against them.

Now that the rule has been eliminated, defendants can reach settlements in cases even if they continue to publicly dispute or deny the SEC’s allegations.

The SEC has also stated it will stop enforcing older settlement agreements that didn’t require companies to admit or deny wrongdoing.

This effectively means that people and companies who previously reached agreements with the SEC won’t be punished for publicly disagreeing with the SEC’s claims about those older cases.

Paul Atkins Says Policy Created Wrong Impression

SEC Chair Paul Atkins believes the previous rule might have given the impression that the agency was trying to avoid being criticized.

He also explained that the decision reaffirms the importance of free speech and the right to critique government actions.

“Speech critical of the government is an important part of the American tradition.”

According to Paul, the Securities and Exchange Commission (SEC) has begun to be less strict with some of its enforcement efforts under the Trump administration, compared to how it operated in the past.

Community Supports the SEC Decision

Bitcoin investor Wayne Vaughan believes the SEC’s decision is a welcome change that should have happened sooner. He explained that the SEC often requires people to agree to the terms of a settlement, even if those terms include information that is demonstrably false.

They focus on crafting a story that helps them achieve their goals, grow or protect their power, and stay out of trouble.

SEC Commissioner Hester Peirce also supported the decision, explaining that requiring defendants who reach settlements to remain silent doesn’t benefit financial markets or protect investors.

According to Peirce, openly questioning regulators can ultimately make the government more responsible and markets more understandable.

The SEC continues to have complete power to investigate and reach settlements, but eliminating the requirement for companies to neither admit nor deny wrongdoing represents one of the agency’s most significant changes to its processes in decades.

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2026-05-19 11:38