The US Securities and Exchange Commission is revising Rule 15c2-11 to clarify which securities over-the-counter broker-dealers can quote. Originally adopted in 1971 to combat penny stock fraud, the rule mandates up-to-date issuer information before quoting.
In 2021, the rule was expanded to include fixed-income securities, triggering market backlash. The new proposal narrows its scope back to "equity securities" only, reversing that interpretation.
The move reignites debate over whether certain crypto assets qualify as equity securities. The SEC has opened a 60-day comment period, with Commissioner Hester Peirce emphasizing the need for clarity on crypto’s treatment and the potential for an "expert market."
This effort aligns with broader regulatory coordination. Last week, the SEC and Commodity Futures Trading Commission signed a memorandum to jointly oversee markets, aiming to end long-standing jurisdictional disputes.