Columbus, OH – On Monday, The Buckeye Institute filed its second amicus brief in Powell v. U.S. Securities and Exchange Commission (SEC). This one with the U.S. Supreme Court, calling on the court to hear the case and overturn the SEC’s unconstitutional gag rule, which prohibits Americans who settle cases with the SEC from discussing the case publicly.

“The SEC’s gag rule guarantees that Lady Justice is not only blind, but that she is also deaf,” said David C. Tryon, director of litigation at The Buckeye Institute. “By accepting this case, the U.S. Supreme Court can tell the SEC that it cannot use an unconstitutional gag rule to silence an untold number of Americans from discussing their cases publicly.”

In its brief, The Buckeye Institute argues that the SEC gag rule—adopted in 1972 in violation of the Administrative Procedure Act—suppresses free speech rights, exceeds the SEC’s regulatory authority, distorts the fairness of enforcement proceedings, and effectively evades judicial review. In urging the court to hear the case, The Buckeye Institute points out that the SEC gag rule only applies to defendants, not to the SEC itself, and conceals information that might undermine or raise questions about the SEC’s own actions. 

The New Civil Liberties Alliance, which brought Powell v. SEC, proposes a revision to the SEC’s regulation that would end the SEC’s regulatory overreach and violation of the First Amendment. The Buckeye Institute called on the court to grant this petition and end the SEC’s “usurpation of the First Amendment.”

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