Does anyone here have more insight on these proposed rules and the likelihood of them passing. I use a brokerage account quite a bit and don't want the gov't messing up life even more.
https://www.foxnews.com/opinion/bidens-sec-is-coming-your-investment-account
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Late last year, SEC Chair Gary Gensler rolled out a set of far-reaching, experimental reforms that, if finalized by the agency, would fundamentally change the way retail investors' stock trades are handled. These include a set of prescriptive government mandates dictating where these trades would need to be executed and at what price.
Gensler claims that he needs to act quickly and act aggressively because there isn't enough competition to execute your stock trades, and you may not be getting the best price theoretically possible.
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So why the sudden rush by the SEC to upend and micromanage a market that already works extraordinarily well for retail investors? At its core, Gensler a hundred millionaire, 65-year-old former Goldman Sachs partner appears to be motivated by the view that Main Street America simply isn't capable of choosing how they should invest their own money and that they need the government to protect them from themselves.
The recent explosive growth in the number of retail investors' participating in the stock market, punctuated by extraordinary retail trading activity and market turmoil in meme stocks in January 2021, has provided a rationale however misguided for the SEC to act now in the name of competition and investor protection.
Under the guise of enhancing competition to execute retail investors' trades on an "order-by-order" basis, Gensler's rules would attack the self-directed brokerage model and the millions of investors who use this model by introducing significant frictions into stock trading, compressing brokers' revenues, and making brokerage platforms less attractive to retail investors.
The rules would take the extraordinary step of centralizing the execution of retail investors' stock trades in what many expect to be slower, more complicated, and more expensive auctions run by quasi-governmental exchanges just like the markets used to work (or not work) in 1975. Trust the government, they are here to help. Remember how well the Obamacare website worked?
Quote:
Gensler's campaign against self-directed brokerage and retail investors is also evident in another set of extreme reforms Gensler is expected to roll out later this year that would crack down on the ability of brokers to communicate with their customers using so-called "digital engagement practices."
In other words, this would ban the normal twenty-first century methods of communication used by countless businesses across a variety of industries including insurance, banking, retail and eCommerce, healthcare, travel and leisure, entertainment, and telecommunications.
The damage the SEC's overreaching rule proposals will do to the stock market and retail investors is likely to be extraordinary and long-lasting.
https://www.foxnews.com/opinion/bidens-sec-is-coming-your-investment-account