- The SEC has proposed to amend Rule 15c2-11 to clarify it applies only to “equity securities,” reversing a 2021 interpretation.
- The rule had previously created uncertainty by being applied to fixed-income securities and potentially to crypto assets.
- Commissioner Hester Peirce welcomed the move and is specifically seeking public comment on the rule’s application to crypto assets.
- The SEC and CFTC recently agreed to coordinate oversight to end “regulatory turf wars,” including in crypto markets.
The U.S. Securities and Exchange Commission proposed a key amendment on Monday, aiming to resolve years of industry confusion over a broker-dealer reporting rule for the over-the-counter market. This move directly reverses a controversial 2021 interpretation that expanded the rule’s scope.
Rule 15c2-11, first adopted in 1971, requires broker-dealers to maintain current public issuer information before publishing OTC quotes. Its 2021 reinterpretation to include fixed-income securities like bonds, however, sparked significant market backlash.
Consequently, the new proposal seeks to limit the rule’s reporting requirements solely to “equity securities.” SEC Commissioner Hester Peirce welcomed the clarification, stating the prior approach had “foster[ed] uncertainty in this market.”
Meanwhile, a critical question remains on whether “equity securities” could encompass crypto assets. The SEC has opened a 60-day public comment period to address this precise issue.
Peirce noted she is particularly interested in views on the rule’s application to crypto assets. This regulatory push occurs as both the SEC and the Commodity Futures Trading Commission seek clearer crypto oversight.
The agencies signed a memo last week agreeing to coordinate their oversight of financial markets. They stated this cooperation would end decades of “regulatory turf wars” between them.
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