Preempt blue sky for exchange/ATS trades; kill CAT; abolish Rule 144 resale limits
For capital markets, Mandate would preempt state blue-sky for securities on established markets, terminate the Consolidated Audit Trail, and abolish Rule 144/other resale restrictions in favor of issuer current-information duties.
Mandate
Mandate Ch. 27 (Financial Regulatory Agencies) — Better Capital Markets: SEC should preempt blue sky registration, qualification, and continuing reporting for securities traded on established securities markets (national exchange or ATS); terminate the Consolidated Audit Trail (CAT) program; abolish Rule 144 and other regulations that restrict securities resales and instead require a company that has sold securities to provide sufficient current information to the market.
Undo plan
1) Preserve CAT (or equivalent surveillance) for market manipulation/spoofing detection with privacy safeguards—do not terminate without replacement.
2) Limit blue-sky preemption to NMS securities; keep state tools for OTC microcaps.
3) Reform Rule 144 holding periods rather than abolish resale discipline that prevents pump-and-dumps.
4) Pair any resale liberalization with Rule 10b-5 enforcement resources.
5) Verify: CAT outage/alternative surveillance coverage; OTC fraud incidence.