Robinhood shares jumped roughly 7% and Webull climbed around 4% when the SEC (U.S. securities regulator) implemented its decision to eliminate the pattern day trader rule, which had required traders making more than three day trades in five business days to maintain at least $25,000 in a margin account. The rule, established in 2001 after the dot-com bubble, was repealed following SEC approval of FINRA’s proposal on April 14, 2026, and replaced on June 4 with intraday risk-based margin standards under FINRA Rule 4210. Robinhood and Webull now allow unlimited day trading, removing day-trade flags and 90-day restrictions. The change could increase activity on retail-focused platforms, but it also shifts more responsibility to brokers and raises questions about whether more frequent trading improves retail-investor outcomes.