Benchmark announced that the U.S. Securities and Exchange Commission released a market‑structure reform proposal on June 11, targeting the repeal of Rules 611 and 610(e), a move that could reshape crypto pricing, market dynamics, and investor participation in tokenized assets.
Details of the SEC Proposal
The SEC aims to eliminate longstanding trading‑protection rules that have governed U.S. equities for nearly two decades. By removing the NBBO requirement and restrictions on locked or crossed quotations, the agency hopes to lower transaction costs, spur competition, and create room for blockchain‑driven innovation. The proposal explicitly cites the desire to enhance price efficiency for both traditional and tokenized securities.
Impact on Tokenized Stocks and On‑Chain Trading
Current Rule 611 forces trades to match the National Best Bid‑Ask price, while Rule 610(e) limits certain quote configurations, constraints that hinder Automated Market Maker (AMM) models prevalent in decentralized finance. Benchmark’s analysis suggests that discarding these rules could slash compliance expenses for tokenized shares and simplify on‑chain trading infrastructure. Investors may benefit from more fluid price discovery and reduced barriers to entry for crypto‑based platforms.
Outlook for Crypto Markets
If the SEC adopts the reforms, blockchain enterprises could gain a regulatory foothold, encouraging new entrants and potentially boosting crypto market liquidity. However, the easing of safeguards may also prompt heightened scrutiny from regulators concerned about market integrity. Stakeholders will watch closely to gauge how the changes influence investor confidence and the broader crypto ecosystem.