Legislation authored by U.S. Representative Ed Royce (R-Calif.), the National Securities Exchange Regulatory Parity Act (H.R. 5421), was advanced by the House Financial Services Committee today on a 47-12 vote. The bill amends the Securities Act to clarify the “blue sky” exemption from state registration for exchanges other than the NYSE and NASDAQ.
“Government is often pretty slow to change with the times, but the market is not. Static regulation often does not keep pace with innovation. A lot has changed since 1996, when Congress amended the ’33 Act and exempted three specific stock exchanges by name from state-by-state regulation
“The SEC’s interpretation of the law has created a two-tiered playing field by giving this ‘blue sky’ exemption only to these three exchanges which existed in 1996.
“It was not the intention of Congress to create such a carve-out. This bill, the National Securities Exchange Regulatory Parity Act, rights this wrong.
“It provides clarity around the exemption, which will now apply to all securities listed on a national exchange regulated by the SEC, with Commission-approved listing standards.
“Why is this exemption important? You could ask anyone from Massachusetts who tried to invest in a little company called Apple during its IPO. …read more
Source:: U.S. Rep. Ed Royce