“[the SEC should] Preempt blue sky registration, qualification, and continuing reporting requirements for securities traded on established securities markets (including a national securities exchange or an alternative trading system).”
Citation: Project 2025, Section 5.1: Financial Regulatory Agencies, David R. Burton, page 862, paragraph 10
Context:
This would override state-level regulations (blue sky laws) for securities traded on national exchanges or alternative trading systems. This would simplify trading by creating a single, nationwide regulatory framework. It reduces the complexity and cost for companies and traders dealing with multiple state regulations. However, it would limit states’ ability to enforce their own protections, potentially reducing investor safeguards.
Full contextual analysis of Section 5.1: Financial Regulatory Agencies here.
Categories: Deregulation, The SEC