I don’t believe the SEC is giving in, the amendment to 15c2-11 is designed to remove representation when there is No Current information/disclosures from OTC stocks. It could adversely affect every delinquent SEC registered stock and every not-registered stock on the OTC that has no current info/disclosures.
It could diminish the need for SEC Suspensions where the SEC has to spend time to find delinquent SEC Registered stocks and OTC stocks that don’t have any current information.