The SEC has proposed narrowing Rule 15c2-11 to equity securities only, and is now seeking comment on whether it should apply to certain crypto assets, among other questions.
The US Securities and Exchange Commission is pushing to clear up years of confusion over a key broker-dealer reporting rule that prevented certain assets from being quoted by broker-dealers on the over-the-counter (OTC) market.
The SEC Rule 15c2-11 was first adopted in 1971, aimed at reducing fraud in the penny stock market. It requires broker-dealers to maintain up-to-date public information about an issuer before it can publish over-the-counter quotes.
In 2021, the rule was reinterpreted to also include fixed-income securities (such as government or corporate bonds), which saw backlash from the market. There have also been questions about whether it applies to crypto securities.
