The U.S. Securities and Exchange Commission (SEC) has rescinded a longstanding rule that prohibited parties from denying the agency’s allegations in enforcement settlements. This policy, in place since 1972, has been removed to enhance transparency and align with practices of other federal agencies. SEC Chair Paul Atkins emphasized that the change ends the prohibition on criticism by settling defendants, allowing for more flexibility in resolving enforcement actions. The policy shift is particularly significant for the crypto sector, which has seen numerous enforcement actions in recent years. The SEC's decision follows scrutiny over how crypto cases are handled and aims to improve public disclosures in settlements. Commissioner Hester Peirce supported the change, noting that forced silence does not serve market integrity or investor protection. The rescission may influence how settlements are structured, potentially affecting the risk calculus for crypto firms negotiating settlements.