SEC cracks down on bond basis trade?

Not sure I understand, so it covers hedge funds but not the bond basis PMs at the hedge funds?

https://www.reuters.com/markets/us/us-sec-set-adopt-treasury-market-dea…

In light of public comments, SEC officials said they substantially changed the proposed rule, including by scrapping a quantitative test under which firms trading $25 billion in securities in any four of the prior six months would have been required to register as dealers.

Also eliminated was another qualitative test that would have required firms that routinely bought and sold the same or similar securities in a single day to register.

The new rule should apply to about 43 companies, officials said.

"Those changes remove some of the most objectionable parts that market participants have been concerned with," said Nathaniel Wuerffel, head of market structure at BNY Mellon.

"But they won't fully remove, for example, hedge funds from being captured by the rule if they still meet the qualitative elements of the definition," he said.