Restoring the Secondary Trading Market Act
Sponsored By: Representative Meuser
In Committee
Summary
Preempts state regulation of off-exchange secondary trading when an issuer publicly provides required current information. This bill would add a new paragraph to Section 18(a) of the Securities Act of 1933 that stops States from prohibiting, limiting, or conditioning off-exchange secondary trades in securities of issuers that supply the specific current disclosures cited in 17 CFR 230.257(b) and 15c2-11(b). The precise scope of "off-exchange secondary trading" would be defined by the Commission.
Show full summary
- Issuers: Companies that provide the listed current information would face fewer state-level limits on off-exchange secondary trading in their securities. This change links those protections to the specific disclosures named in the CFR citations.
- Investors: Buyers and sellers could gain broader access to off-exchange trading in covered securities because States could not block or condition those trades.
- State regulators: States would lose the authority to prohibit, limit, or impose conditions on off-exchange secondary trades for issuers that meet the disclosure triggers.
- The Commission: The bill delegates to the Commission the task of defining which transactions count as off-exchange secondary trading.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
More off-exchange trading for investors
This bill would stop States from banning, limiting, or conditioning off-exchange secondary trading in a company's securities when the company makes current information public. Investors would be able to buy and sell those shares off-exchange across state lines without state limits. 'Off-exchange secondary trading' would be defined by the Securities and Exchange Commission. The preemption would apply only when the issuer provides the information listed in 17 CFR 230.257(b) and 17 CFR 240.15c2-11(b). The change would take effect upon enactment.
Sponsors & CoSponsors
Sponsor
Meuser
PA • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in