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119-hr-7127119th CongressWALLET

Restoring the Secondary Trading Market Act

Sponsored By: Representative Meuser, Daniel [R-PA-9]

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.

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  • 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.

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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, Daniel [R-PA-9]

PA • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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