The U.S. Securities and Exchange Commission has moved to narrow the reach of Exchange Act Rule 15c2-11, proposing an amendment that would limit the rule explicitly to equity securities. If adopted, the change would remove crypto assets from the rule’s scope and ease a compliance burden that has weighed on broker-dealers quoting digital assets in OTC markets.
The proposal opens a 60-day public comment period that runs into mid-May 2026 and aims to address uncertainty that has persisted since a broader 2021 interpretation extended the rule’s practical impact beyond its traditional equity focus. The SEC is presenting the amendment as a clarification of scope rather than a broader retreat from oversight of crypto trading activity.
A Narrower Rule With Direct Market Consequences
Rule 15c2-11 has been in place since 1971 and requires broker-dealers to gather and review issuer information before publishing quotations in the over-the-counter market. The proposed amendment would restore the rule to what the SEC now describes as its traditional application by making clear that it applies only to equity securities.
That change would matter immediately for crypto market participants because it would remove digital assets from the rule’s pre-quote review and documentation requirements. For broker-dealers active in OTC crypto markets, the main practical effect would be lower pre-trade compliance friction and a potentially simpler path to making markets in certain instruments.
Commissioner Hester Peirce publicly supported the proposal, arguing that it addresses confusion that has lingered for years. Her view is that Rule 15c2-11, by its own text, was always tied to securities quotations and was historically understood as a rule aimed mainly at OTC equity markets.
Lower Compliance Costs, But Not a Regulatory Free Pass
The SEC’s proposal could encourage broader quoting activity and more secondary-market participation for crypto instruments traded in OTC venues. Market participants expect that reducing this specific compliance cost could support greater liquidity, deeper order books, and narrower spreads for some digital assets.
At the same time, the agency has made clear that this would not remove crypto from regulatory scrutiny more broadly. The SEC is not giving up its other tools to pursue fraud, manipulation, or securities-law enforcement, and disputes over whether particular tokens qualify as securities will still shape who benefits from the rule change.
The amendment also fits into a wider pattern of SEC efforts to provide more operational clarity for digital-asset firms. Alongside this proposal, the agency has also updated capital-treatment guidance for qualifying payment stablecoins, signaling a more targeted effort to adapt existing frameworks rather than apply blanket restrictions.
The final market impact will depend on the outcome of the public comment process and any eventual transition guidance. If the amendment is adopted substantially as proposed, it could meaningfully reshape OTC dealer models for crypto assets while leaving the larger debate over token classification and securities status unresolved.
