Huoxing Finance reports that on June 15, investment bank Benchmark stated in its latest research report that the U.S. Securities and Exchange Commission’s (SEC) proposal to rescind Rule 611 and Rule 610(e) under Regulation NMS could become the “most decisive regulatory change” impacting the market structure of crypto and tokenized assets by 2026. The proposal, announced on June 11, seeks to eliminate U.S. stock trading protection and quote restriction rules that have been in place for nearly two decades. The SEC stated that this move aims to reduce trading costs and create greater room for market competition and technological innovation. Benchmark’s analysis indicates that the current Rule 611 (Order Protection Rule) requires trades to adhere to the National Best Bid and Offer (NBBO), while Rule 610(e) restricts “lock-cross” quoting practices. These mechanisms function effectively within traditional matching systems but impose structural constraints on Automated Market Maker (AMM) models in Decentralized Finance (DeFi). The report notes that if these rules are rescinded, they would significantly lower compliance barriers for tokenized equities and on-chain trading systems, making AMM-based trading models more accessible to the U.S. capital markets. Among potential beneficiaries, Benchmark specifically highlights Securitize, which it believes stands to benefit most directly as a tokenized securities infrastructure provider, while Coinbase and Galaxy Digital would also benefit from expanded trading, market-making, and custody infrastructure. However, the report also emphasizes that the regulatory adjustments do not resolve all core issues—such as exchange registration regimes, custody and clearing frameworks, and the legal status of DeFi-native trading—each of which remains unclear. Industry participants generally expect that an “innovation exemption mechanism” will become a key complementary policy. The SEC has currently opened a 60-day public comment period on the proposal, with market participants anticipating a final vote as early as early 2027.
SEC Proposes Rule Changes That Could Impact DeFi and Tokenized Stocks
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Summary
On June 15, 2026, Benchmark reported that the SEC proposed repealing Rule 611 and Rule 610(e) under Regulation NMS, a move that could reshape liquidity and crypto markets. These rules, in place for nearly 20 years, currently restrict DeFi’s AMM model; their removal may simplify compliance for tokenized stocks and on-chain systems. Firms such as Securitize and Coinbase could benefit. The SEC also connected the proposal to CFT (Countering the Financing of Terrorism) compliance efforts. A 60-day comment period is open, with a final decision expected in early 2027.
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