Legislation authored by U.S. Representative Ed Royce (R-Calif.), the National Securities Exchange Regulatory Parity Act (H.R. 5421), was passed unanimously by the House of Representatives today. The bill amends the Securities Act to clarify that the exemption from state registration should apply to national exchanges.
“If you go back to 1996 as part of the National Securities Market Improvement Act, Congress acted to exempt three specific stock exchanges from state-by-state registration.
“Why was that exemption so important? You could ask anyone from Massachusetts who tried to invest in a little company called Apple during its December 1980 IPO. State regulators banned Apple stock for sale to the public for… being ‘too risky.’
“Congress passed a good bill in ’96, but we got one thing wrong… we couldn’t predict the future. Today, only two of the original three exchanges exist, and many more exchanges have joined the fray. The SEC’s interpretation of the law has in fact created a two-tiered legal structure by giving this ‘blue sky’ exemption to the original three named exchanges.
The bill before us today simply gives all national exchanges equal treatment. We give an immediate exemption to securities listed on a national securities exchange registered with the SEC, …read more
Source:: U.S. Rep. Ed Royce