On May 18, 2026, the SEC issued a new rule (Rule) formally rescinding its requirement that defendants settling enforcement actions agree not to publicly deny SEC allegations in the complaint or administrative order. First implemented in 1972, Rule 202.5(e) of the SEC’s informal rules and procedures – colloquially known as the SEC’s “gag rule” – has guided SEC enforcement practices for more than 50 years and has been an obstacle for fund managers facing SEC scrutiny. Although the rescission may sound like a concession to the private funds industry, a party’s violation of “no deny” after a settlement has not actually triggered the reopening of civil or administrative proceedings, noted legal experts interviewed by the Private Equity Law Report. Nor does adoption of the Rule necessarily mean that settlement negotiations with the SEC will be simplified or agreed on terms more favorable to defendants. This article summarizes the Rule; presents the contrasting views of Commissioner Hester M. Peirce and former SEC Chair Gary S. Gensler; examines whether it is possible or advisable to revisit settled enforcement actions; considers the relationship between the Rule and the Powell v. U.S. case decided by the U.S. Court of Appeals for the Ninth Circuit; and offers practical takeaways for PE sponsors, with expert legal commentary. See “SEC’s Approach to Exams, Enforcement and Retailization Under Atkins” (Jun. 11, 2026).