I think you misunderstood what I was saying. The SEC has jurisdiction over the OTC and ANY publicly traded company. HOWEVER, they rarely use that authority for non-reporting stocks because they don’t really care about “investors” who decide to buy such crap despite their warnings about the risk. The SEC would need 10,000 new enforcement officers to even make a dent. One look at the number of stock suspensions of non-reporting stocks vs. the number of such stocks out their (most of which would deserve it) makes my point. It’s minuscule.
Unless the act is egregious in scale and impact they simply don’t care.
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