HR-7127 — Restoring the Secondary Trading Market Act

YourVoice.Now Summary

Your MoneyCorporate BenefitsTransparency & Accountability

You could sell shares in a firm off the stock exchange — states could not set limits if it posts current facts.

Your Money

Selling shares outside a stock exchange — states could not block it

Shares in many small companies change hands off the stock exchange, through brokers or private deals. States can now require registration or set terms for those sales. The bill would end that for companies that publish current information.

State oversight of off-exchange shares — no state conditions allowed

Right now, state officials can set their own terms before these trades go through. The bill would end that check. States could still look into fraud and sue over it.

Corporate Benefits

Companies' exemption from state trading rules — if they publish current information

A company whose shares trade off the exchange now faces a different rulebook in each state. The bill sets one federal rule instead. The company just has to keep current facts public.

Transparency & Accountability

Company information posted publicly — condition for skipping state rules

To skip state rules, a company must keep current facts about itself public. It can use reports it already files with the SEC, or the basic facts brokers gather before quoting a stock. The bill adds no new report. It makes an old one the price of skipping state rules.

More about this bill

If you own shares in a company that trades off the stock exchange, selling them could get easier. Today, your state can require registration or set conditions on those trades. Under this change, states could not block, limit, or add conditions to them. The company must first make current information about itself public. It can do that with the small-offering reports the SEC already requires, or the basic company facts brokers collect before quoting a stock. States would keep their power to investigate and sue over fraud in these trades. What they would lose is the power to set rules before a trade happens. The SEC would decide what counts as off-exchange secondary trading, so the reach is not yet set. A House committee approved the bill in March 2026. The full House has not voted.

Congressional Summary

This bill prohibits states from banning, limiting, or imposing conditions upon off-exchange secondary trading of securities. This prohibition applies if the issuer of those securities provides public information on the issuer's financial status in accordance with federal regulations.

Legislative Subjects

Business recordsCorporate finance and managementFinancial services and investmentsSecuritiesState and local government operations

Details

Congress: 119th
Chamber: House
Status: summarized
Action: Placed on the Union Calendar, Calendar No. 493.
Action Date: 2026-03-25
Date Added: 2026-04-19
Source: Congress.gov →

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