SEC removes $25,000 minimum capital requirement for traders in the U.S. — what it means for the crypto industry

• The SEC approved changes to intraday trading rules.
• FINRA is eliminating the $25,000 minimum capital requirement.
• Although the changes primarily target the stock market, they will also affect crypto traders.

On April 14, 2026, the U.S. Securities and Exchange Commission (SEC) approved a proposal by the Financial Industry Regulatory Authority (FINRA) to revise intraday trading rules in the stock market. In particular, regulators removed the $25,000 minimum capital requirement for so-called pattern day traders.

Previously, this status applied to traders who executed at least four trades within five trading days on a margin account, provided that such trades accounted for more than 6% of their activity. The key requirement was maintaining at least $25,000 in the account before trading.

What is changing?

Regulators are completely removing the definition of pattern day trader, the $25,000 minimum capital threshold, and the day-trading buying power mechanism.

Instead, a new model called Intraday Margin Standards is being introduced. It is based on real-time risk assessment rather than fixed thresholds. The system includes three key metrics:

• IML (Intraday Margin Level) — current margin level;
• IML-reducing transaction — transactions that reduce margin level;
• intraday margin deficit — margin deficit during the trading day.

The new rules provide two approaches for brokers: real-time monitoring with blocking of risky trades, and end-of-day deficit calculations.

In case of violations:

• if the deficit is not covered within five days — the account may be frozen for 90 days;
• repeated violations — restriction on opening new positions;
• exception — deficit up to 5% of capital or up to $1,000.

The changes will take effect 45 days after the publication of the Regulatory Notice. The transition period for brokers will last up to 18 months.

Market reaction

Bloomberg reported that the vast majority of market participants supported the initiative.

In particular, Robinhood Markets Chief Brokerage Officer Steve Quirk called the move “a significant step forward in expanding opportunities for retail investors.”

“By removing outdated barriers, this change better reflects the modern trading landscape and gives everyone the freedom to invest and participate in markets on their own terms,” he said.

Webull President Anthony Denier also supported the reform, stating that changes to pattern day trading restrictions were “long overdue.”

How will this affect the crypto market?

Although the regulators’ decision directly targets the traditional stock market, it will also impact the crypto industry.

Retail investors will gain more freedom to actively trade instruments related to digital assets, such as shares of mining companies, cryptocurrency exchanges, and spot crypto ETFs.

It is worth noting that shares of BitMine, the largest public holder of Ethereum, recently began trading on the New York Stock Exchange (NYSE). The exchange also listed the Morgan Stanley Bitcoin Trust.

Earlier, the WSJ reported that the SEC and FINRA have shown interest in trading shares of companies holding crypto reserves.

See also: "RaveDAO Price Forecast: RAVE Hits $4.1B, But On-Chain Data Tells a Different Story"

#U.S. Securities and Exchange Commission (SEC) #Trading #USA

Share: