BREAKING: FINRA Just Approved the PDT Rule Changes - Here's What Happens Next
Update: September 25, 2025
The day we've all been waiting for finally arrived. Yesterday, FINRA officially approved amendments that would eliminate the controversial $25,000 minimum equity rule for pattern day trading. This isn't speculation anymore—it's happening, and the only thing standing between us and this historic change is SEC approval.
If you've been following my coverage of the PDT rule changes, you know I've been tracking this proposal since the petition was filed in July. Now we're seeing the most significant development yet.
Complete Guide: PDT Rule Change 2025 - What You Need to Know
Get the full background on the proposed PDT rule changes, including what is a pattern day trader, the $2,000 minimum proposal, and comprehensive analysis of how this affects your trading.
What Just Happened at FINRA
The Financial Industry Regulatory Authority on Tuesday approved amendments that would replace the long-standing threshold, making active day trading more accessible to smaller accounts. The change is pending approval by the Securities and Exchange Commission.
This is absolutely huge. FINRA's approval moves us from "proposed changes" to "approved changes awaiting final SEC review." The difference is massive—we're no longer talking about what might happen, but what's actually been approved and is heading to the final regulatory step.
The Revolutionary Change
Instead of requiring $25,000 minimum equity, FINRA is replacing this mandate with an intraday margin rule that applies the existing maintenance margin rules to intraday exposure. In other words, your intraday buying power will be based on the margin requirements for the positions you take during the day, not some arbitrary fixed equity minimum.
This is even more significant than the $2,000 minimum I discussed in my previous analysis. They're essentially moving to a risk-based system where your buying power depends on what you're actually trading, not an arbitrary account balance threshold.
Why This Timing Makes Perfect Sense
The regulators said the overhaul reflects how technology and market access have transformed retail trading since the rules were first adopted. Think about it—the original PDT rule was created in 2001 during the dot-com crash, when online trading was still relatively new and risk management tools were primitive.
Today's trading landscape is completely different:
- Advanced risk management systems at every broker
- Real-time margin monitoring and automatic position closures
- Sophisticated educational resources and paper trading platforms
- Instant access to market data and analysis tools
Market Impact Already Showing
The market's already responding positively to this news. Robinhood shares rebounded from an earlier loss and closed 1% higher in Wednesday trading following the FINRA announcement. This tells me that institutions have confidence that brokers can handle the increased retail participation effectively.
The Timeline Just Accelerated
Here's the updated timeline now that FINRA has approved:
✅ COMPLETED: FINRA Board Approval (September 24, 2025)
- FINRA officially approved the amendments
- Rule change package sent to SEC
🔄 CURRENT: SEC Review Process (Fall 2025)
- Final regulatory approval needed from SEC
- Public comment period may be reopened
- SEC can approve, modify, or request changes
📅 EXPECTED: Implementation (Early to Mid-2026)
- If SEC approves without modifications
- Brokers need time to update systems
- Likely gradual rollout across platforms
What You Should Do Right Now
- Don't Wait for Implementation to Start Learning: Use this time to paper trade and develop your strategies. The rule change doesn't make day trading easier—just more accessible.
- Prepare Your Capital Strategy: Even without the $25,000 requirement, you'll still want more than the bare minimum to trade effectively and maintain proper risk management.
- Stay Informed on SEC Developments: The SEC review is the final hurdle. I'll continue monitoring and updating as we get more information.
- Choose Your Broker Wisely: Not all brokers will implement these changes the same way. Some may maintain higher internal minimums or offer different features for smaller accounts.
The Bigger Picture
This FINRA approval represents the culmination of years of advocacy from retail traders, brokers, and industry professionals who recognized that the PDT rule had become an outdated barrier rather than a protective measure.
The rule change could lead to more options trading and boost activity for brokers, which means we'll likely see increased innovation in trading platforms, educational content, and risk management tools designed specifically for active retail traders.
What I'm Watching Next
With FINRA approval secured, I'm now focused on:
- SEC commentary and any concerns they raise
- How individual brokers plan to implement the changes
- Whether any modifications are requested during SEC review
- Timeline updates from the SEC on their approval process
Bottom Line
We just witnessed a historic moment in retail trading regulation. The 24-year-old PDT rule that's locked millions of traders out of active day trading strategies has been officially approved for elimination by FINRA—and honestly, it's about time.
While we still need SEC approval, this is the most significant step forward yet. The question is no longer "if" this change will happen, but "when"—and the answer is looking more like early 2026 rather than the "maybe someday" timeline we had before.
Stay tuned for more updates as the SEC review progresses. This is the biggest development in retail trading accessibility since online brokers eliminated minimum commission requirements.
This is a developing story. I'll continue updating as new information becomes available about the SEC review process and implementation timeline. Follow my blog for the latest updates on this historic change to day trading regulations.
