SEC Chair Gary Gensler highlighted key lessons from the GameStop short squeeze in 2021, emphasizing the need for market modernization and shorter settlement times. The incident showcased inefficiencies where retail investors lost access to the market due to restrictions imposed by brokers. Gensler noted that historical settlement processes led to significant delays, increasing risks for investors. With SEC rule changes, the settlement window has been shortened to T+1, improving market efficiency. This change reduces the collateral requirements on brokers, easing the burden that contributed to trading restrictions during the GameStop incident. Moreover, Gensler's comments echo sentiments on how innovations like blockchain could reshape financial transactions with faster and more efficient processes. These developments have spurred interest in the potential of decentralized finance and blockchain technology in modernizing market structures, especially as discussions around round-the-clock trading emerge within traditional exchanges.

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