OTC Markets celebrates passing of ESOP Fairness Act Legislation

OTC Markets Group celebrates the ESOP Fairness Act, which was included in the SECURE Act 2.0 retirement package that was signed into law on December 29, 2022. We thank the lead sponsors Representative Brian Higgins and Senator Gary Peters who advocated for the inclusion of this important provision, along with Senators Thom Tillis and Kyrsten Sinema, and Representatives Mike Kelly, Vern Buchanan, Linda Sanchez, Jackie Walorski, Darin LaHood and Bill Pascrell. Employee Stock Ownership Plans are benefit plans recognized under IRS regulations that allow companies to offer stock ownership to their employees in a tax-efficient manner. Section 123 of the SECURE Act 2.0 will allow qualifying companies trading on the OTCQX Best Market and OTCQB Venture Market to offer ESOPs to their employees under the same rules as exchange-traded companies. With approximately 800 OTCQX and OTCQB companies meeting the criteria under the ESOP Fairness Act, the OTC Markets Group team played an active role in advocating for this legislation on behalf of these companies and their many employees.