The U.S. Securities and Exchange Commission has clarified that Exchange Act Rule 15c2-11 applies exclusively to equity securities, resolving long-standing uncertainty about its reach across asset classes.
This clarification reinforces oversight in over-the-counter (OTC) equity markets, requiring broker-dealers to verify key information before quoting or maintaining a market. The move effectively excludes crypto-linked products and fixed-income securities from the rule’s requirements.
Commissioner Hester M. Peirce endorsed the proposal, acknowledging past ambiguity from the 2020 amendments and taking responsibility for not clarifying the scope earlier. She emphasized the need for public input during the 60-day comment period, particularly on defining equity securities and addressing crypto asset treatment.
The decision follows a recent SEC framework to classify crypto tokens, aiming to bring regulatory clarity to digital asset markets. Brokers previously hesitated to trade certain crypto assets due to legal risk, but this action signals a more defined regulatory perimeter.