In all fairness, it's a proposal, so you can't designate firms that currently don't have $5,000,000 in the bank "Dead Firms Walking". Once the proposal has been adapted, firms will have time to meet the new requirements. Some will be able to, some will not. Also, whether a firm is sufficiently capitalized or not depends on the number of customers and trading volume.

The Refco example shows that non-Forex customers will get their money, but Forex customers will have problems in case of bankrupty. This does not change. The proposal seems noble, but does nothing structurally to improve the situation for the retail Forex trader. There is no segregated accounts requirement, as far as I know, or some other measure to make sure that a customers' funds simply can't be touched in case of a bankruptcy.

Although I'm all in favor of solvent Forex brokers, my impression is that the NFA doesn't like the Forex market, as it, other than with futures, does not directly profit from its transactions.