United StatesFederal Reserve would include more stocks in margin eligibility rules
After enactment, the Federal Reserve Board would have 90 days to include over-the-counter stocks with a ready market in its definition of OTC margin stock.
What it does
Within 90 days after enactment, the Federal Reserve Board would have to include over-the-counter stocks with a ready market in its definition of OTC margin stock. If it misses the deadline, that definition would apply until the Board issues its rule.
Five years after issuing the rule, the Board would have to report to Congress on credit extended because of the rule and any related risks to the financial system.
Argument forInvestors could have more over-the-counter stocks with a ready market counted as eligible for margin credit.
Argument againstA broader definition could allow more over-the-counter stocks to qualify for margin credit, which may add lending risks the Board must assess.
More detail
The Federal Reserve Board must issue a rule covering over-the-counter stocks with a ready market. The rule covers any over-the-counter equity security with a ready market, as federal regulations define that term. If the Board misses the deadline, the expanded definition applies until it issues the rule. The Board must issue the rule within 90 days after enactment. If it does not, the expanded definition applies until the rule is issued.
The Federal Reserve Board must report to Congress on credit and financial-system risks linked to the rule. The report goes to the House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee. The report is due at the end of the five-year period beginning on the date the Board issues the rule.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 24Introduced in HouseLatest
- Sep 24Referred to the House Committee on Financial Services.Introduced
Economy & Jobs