SEC Eliminates $25,000 Pattern Day Trader Rule in Retail Trading Overhaul
BeInCrypto
The SEC has approved a FINRA proposal to remove the $25,000 minimum equity requirement for retail pattern day traders.Summary
The SEC has approved a FINRA proposal to eliminate the long-standing $25,000 minimum equity requirement for pattern day traders, a rule in place since 2001. This change removes a significant barrier to entry for retail investors by replacing the fixed capital requirement with a system that mandates equity proportional to actual market exposure. The new framework also introduces oversight for zero-days-to-expiration (0DTE) options and provides broker-dealers with an 18-month phase-in period to upgrade their compliance and monitoring systems.
(Source：BeInCrypto)