The SEC removed the minimum capital requirement of $25 000 for active traders, adopting a new risk-based regulatory model.

Legal experts detailed how the rules will operate at broker level and affect all clients, including non-resident investors.

Scope and operation

Daniil Voloshchuk, senior attorney in Juscutum's Technology and Investments practice, said the new framework applies at broker level.

As a result, broker policies will determine trading access and risk controls rather than a universal minimum capital threshold.

Real-time controls instead of freezes

Voloshchuk noted brokers may limit opening of risky positions in real time without freezing entire accounts, providing more targeted interventions.

This approach replaces the prior blanket account restrictions tied to the $25 000 rule, shifting supervision toward position-level risk monitoring.

Relation to cryptocurrency markets

Voloshchuk emphasized the change does not yet cover cryptocurrency markets and said similar techniques are already used by some exchanges.

Legal implementation details and timelines will be defined by broker rules and future SEC guidance, according to the lawyer.