WASHINGTON, D.C. — March 17, 2026 — The U.S. Securities and Exchange Commission has proposed narrowing a key broker-dealer reporting rule and is now seeking public comment on whether it should apply to certain cryptocurrency assets. The move aims to resolve years of regulatory uncertainty for over-the-counter markets.
Proposal Reverses 2021 Interpretation
The SEC announced a proposed amendment to Rule 15c2-11 that would limit its scope to “equity securities.” This would reverse a 2021 agency interpretation that applied the rule to fixed-income securities like government and corporate bonds. That earlier interpretation faced significant market backlash.
Rule 15c2-11 was first adopted in 1971 to combat fraud in the penny stock market. It requires broker-dealers to maintain current public information about an issuer before publishing quotes for its securities on over-the-counter markets.
SEC Commissioner Hester Peirce, who leads the agency’s crypto task force, welcomed the new proposal. She stated the SEC had created years of uncertainty with the 2020 amendment that took effect in 2021.
“By its terms, the text of Rule 15c2-11 always has applied to quotations of a ‘security,'” Peirce said in a statement. “Market participants and other observers including me, however, understood the rule to apply only to quotations of over-the-counter equity securities.”
Uncertainty for Crypto Assets
The central question now is whether “equity securities” could include crypto assets. The SEC defines an equity security as any stock, similar security, or convertible security representing an ownership interest in a company.
Despite the proposal, the SEC has made no final determination regarding crypto. The commission has opened a 60-day public comment period specifically asking for views on this issue.
“I am particularly interested in commenters’ views as to the questions about the definition of ‘equity security,’ the rule’s application to crypto assets, and the appropriate next steps,” Commissioner Peirce added.
She criticized the agency’s previous approach of granting limited, short-term relief instead of providing long-term clarity. “The Commission should have granted long-term no-action relief while we assessed whether the application of the rule to the fixed income market was appropriate,” Peirce explained.
Broader Regulatory Coordination
This proposal occurs amid broader efforts by U.S. financial regulators to establish clearer rules for digital assets. Both the SEC and the Commodity Futures Trading Commission have been working to define their jurisdictions under the current administration.
Last week, the two agencies signed a memorandum of understanding agreeing to coordinate oversight of financial markets, including cryptocurrency. Officials said this agreement would help end decades of regulatory disputes between the agencies.
The SEC’s latest proposal represents another step in this ongoing process. By seeking specific comment on crypto assets, the commission acknowledges the growing intersection between traditional securities regulation and digital asset markets.
Next Steps and Market Impact
The 60-day comment period allows market participants, legal experts, and the public to submit formal responses. These comments will help shape the SEC’s final rulemaking decision.
The outcome could significantly affect how crypto assets are quoted and traded in OTC markets. Clearer rules might provide more stability for broker-dealers handling digital assets.
For now, uncertainty persists. The SEC’s proposal to limit Rule 15c2-11 to equity securities creates a potential regulatory gap for crypto assets that don’t fit traditional definitions. How the commission addresses this gap through the comment process and final rule will be closely watched by the entire financial industry.
Interested parties can review the full proposal and submit comments through the SEC’s official rulemaking portal.
Updated insights and analysis added for better clarity.
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