Crypto Regulation: Why Rule 105 Matters
Crypto is booming, but with growth comes regulation. One key concept to watch is Rule 105 of Regulation M. It’s not crypto-specific, but it can affect how crypto ETFs and related securities are traded.
What is Rule 105?
Rule 105 prohibits short selling a security within five business days of a public offering and then buying the same security in the offering. This stops market manipulation and protects fair pricing.
Why it matters for crypto:
As Bitcoin ETFs and other digital asset funds grow, traditional securities laws like Rule 105 will apply. Understanding this rule helps traders avoid penalties and ensures a fairer market.
Crypto may be decentralized, but regulation is catching up. Stay informed. Stay compliant.
