SEC proposes limiting Rule 15c2-11 to equities, clarifying OTC quotation rules and leaving most crypto assets outside its scope.
The U.S. Securities and Exchange Commission released a proposal on March 16 to revise Exchange Act Rule 15c2-11.
The change would narrow the rule to equity securities traded in the over-the-counter market.
The proposal clarifies long-running questions about whether the rule applied to non-equity assets, including digital assets.
SEC Rule 15c2-11 Proposal Targets Equity Securities Only
Rule 15c2-11 governs how broker-dealers publish price quotations for securities in the OTC market.
Broker-dealers must gather and review issuer information before displaying bid or ask prices.
The rule originally focused on preventing fraud in thinly traded OTC equity markets.
Manipulation and misinformation historically appeared in lightly regulated OTC listings.
The SEC now wants to clarify the rule’s exact scope. The proposal states the rule should apply only to equity securities.
The SEC just released a proposal on March 16, 2026 (press release 2026-28) to amend Exchange Act Rule 15c2-11, which requires broker-dealers to gather, review, and maintain certain information before publishing quotations (i.e., bid/ask prices) for securities in the… pic.twitter.com/WajI5WKDVp
— MartyParty (@martypartymusic) March 16, 2026
That includes stocks and similar ownership instruments traded outside national exchanges. Non-equity instruments would fall outside the quotation review requirements.
The agency published the proposal through press release 2026-28 on its official website.
According to the announcement, regulators want rules tailored to specific asset classes.
The clarification reflects how the OTC market has evolved across different financial instruments.
It also addresses uncertainty created by the rule’s 2020 amendments. The proposal now enters a public comment period.
Feedback will remain open for 60 days after Federal Register publication. Regulators will review submissions before considering final rule adoption.
Related Reading: SEC Eases Rules, Allows Stablecoins in Capital With 2% Haircut
Crypto Markets See Limited Direct Impact From the SEC Proposal
Most cryptocurrencies do not qualify as equity securities under U.S. law.
Assets such as Bitcoin, Ethereum, Solana, and Sui typically fall outside traditional securities categories.
Regulators often classify them as commodities or payment-style digital assets. Oversight in many cases falls under the Commodity Futures Trading Commission.
Because of that classification, the proposed rule change carries little immediate impact for crypto trading.
Broker-dealers quoting crypto assets generally avoid Rule 15c2-11 obligations already. The clarification removes lingering ambiguity around OTC quotation requirements.
It also signals that equity-focused rules will remain separate from digital asset oversight. Tokenized securities could still fall within the rule’s framework.
Those assets represent ownership claims tied to traditional equities.
If structured as equity instruments, broker-dealers must follow the same quotation review process.
Otherwise, digital tokens remain outside the amended rule. The proposal arrives during a broader regulatory shift toward clearer digital asset frameworks.
The SEC has recently emphasized tailoring regulations to specific financial products.
The agency’s current leadership, under Chairman Paul S. Atkins, has signaled support for more targeted rulemaking.
For crypto markets, the immediate result centers on regulatory clarity rather than new obligations.
Dealers quoting digital assets in OTC environments avoid additional information-review requirements.
Liquidity providers also gain clearer guidance on compliance boundaries. The proposal still requires approval through the rulemaking process.
Industry participants now have two months to submit formal comments. Regulators will evaluate feedback before deciding whether to finalize the amendment.
