The bill would require the Federal Reserve to change Regulation T so that any over-the-counter equity security with a “ready market” is included in the definition of an OTC margin stock. The Federal Reserve would have 90 days after enactment to issue the rule. If it misses that deadline, the expanded definition would apply until the rule is issued. Five years after issuing the rule, the Federal Reserve would report to Congress on credit extended because of the rule and related risks to the financial system.
Some over-the-counter equity securities with a ready market could qualify as margin stocks. The bill does not describe how this change would affect specific investors or securities.
The bill does not specify costs or funding.
No publicly available information.
No publicly available information.