$GameStop(GME)$ Protection from Market Manipulation: By holding shares in book DRS form, investors can avoid inadvertently empowering market makers through DSPP conversions by restricting sales, potentially reducing the risk of market manipulation.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Probably SEC needs the stock to be sufficiently liquid
Meaning you cannot get everyone to DRS, because insiders would be forced to issue new shares or sort of