16 Amicus Briefs Back Challenge to SEC Gag Rule

In this episode of Unwritten Law, NCLA President and Chief Legal Officer Mark Chenoweth and Senior Litigation Counsel John Vecchione are joined by Senior Litigation Counsel Peggy Little to discuss new developments in Powell v. SEC, a case asking the U.S. Supreme Court to review the SEC’s long-standing gag rule.

The discussion focuses on a wave of 16 amicus briefs filed in support of Supreme Court review, representing a broad coalition of organizations, legal scholars, and former SEC attorneys. Peggy walks through the key arguments raised across the briefs, including claims that the gag rule constitutes prior restraint, compelled speech, and an unconstitutional condition on settlement.

The episode explores how the rule prevents individuals from ever publicly disputing the SEC’s allegations—even after settlement—while allowing the agency to control the narrative. The conversation also highlights the real-world consequences: reputational harm, career disruption, and the reality that most defendants settle not because they are guilty, but because they cannot afford the cost of fighting the government.

Mark, John, and Peggy examine why the rule has persisted for decades, why it stands out as an outlier among federal agencies, and why this case could provide the Supreme Court with an opportunity to address a long-standing tension between administrative enforcement and the First Amendment.