SEC proposes limiting Rule 15c2-11 to equity securities

The US Securities and Exchange Commission has proposed narrowing Rule 15c2-11 so its reporting requirements for over-the-counter broker-dealers would apply only to "equity securities," reversing a 2021 interpretation that expanded the rule beyond equities. Adopted in 1971 to reduce fraud in the penny stock market, Rule 15c2-11 requires broker-dealers to maintain up-to-date public information about an issuer before publishing OTC quotes.

In 2021 the rule was reinterpreted to include fixed-income securities, such as government or corporate bonds, which prompted market backlash and raised questions about whether crypto securities fall under the rule. Commissioner Hester Peirce, who leads the agency’s crypto task force, welcomed the proposal, saying the agency created years of uncertainty via a 2020 amendment that took effect in 2021.

United States

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