ASA Files Amicus Brief Urging SCOTUS to Strike Down SEC's Gag Rule

WASHINGTON – The American Securities Association (ASA) filed an amicus brief in the United States Supreme Court in Powell v. Securities and Exchange Commission (SEC), urging the Court to grant certiorari and strike down the SEC's "Gag Rule" as an unconstitutional violation of the First Amendment.

"The SEC's Gag Rule is one of the most egregious abuses of power in the federal regulatory state, and ASA is proud to stand with the petitioners in asking the Supreme Court to put an end to it," said ASA President and CEO Christopher Iacovella. 

The SEC's Gag Rule requires every defendant that settles an SEC enforcement action to agree that they will never deny the truth of the SEC's allegations against them, give the "impression" that those allegations are not true, or even "permit" such statements to be made. The SEC is one of only two federal agencies in the entire federal government that imposes such a blanket gag as a non-negotiable condition of settlement.

"But because the SEC silences those who are in the best position to comment on and possibly criticize its enforcement practices, the public is deprived of a valuable perspective. The Gag Rule thus undermines the democratic accountability at the core of the First Amendment," ASA's brief argued.

To read ASA's full amicus brief, click here.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.