The 9th U.S. Circuit Court of Appeals on Wednesday upheld the U.S. Securities and Exchange Commission’s long-standing “gag rule,” which bars defendants from publicly disputing the agency’s allegations after they settle civil enforcement actions. In a unanimous 3-0 opinion written by Circuit Judge Daniel Bress, the court found the rule is not facially unconstitutional, though it left open the possibility of future case-specific challenges. The panel said settling parties may waive certain First Amendment rights in exchange for the benefits of settlement and noted that eliminating the rule could discourage negotiated resolutions. The decision came in Powell et al v. SEC, brought by 12 petitioners—including former Xerox chief financial officer Barry Romeril and the nonprofit New Civil Liberties Alliance—who argued the policy muzzles legitimate criticism. Romeril previously sought U.S. Supreme Court review in a bid backed by billionaire Elon Musk, but the justices declined to hear the case in 2022.