Odaily Planet Daily reports that research firm Benchmark Equity Research stated that the U.S. Securities and Exchange Commission’s (SEC) market structure reform proposal, introduced on June 11, may be one of the most significant regulatory initiatives affecting the U.S. crypto industry this year. The proposal seeks to eliminate Rule 611 and Rule 610(e) of Regulation NMS—core rules governing equity trading routing and execution since 2005—which are widely seen as having long restricted the growth potential of tokenized stocks and on-chain trading.
Rule 611 (Order Protection Rule) requires trading venues to avoid executing trades at prices worse than the “protected quotes” in other markets, thereby enforcing the National Best Bid and Offer (NBBO) system; Rule 610(e) prohibits lock and cross market structures, restricting overlapping quotes and price mismatches.
Benchmark analyst Mark Palmer stated that removing the rule would eliminate a key legal barrier to decentralized finance (DeFi) trading models such as automated market makers (AMMs), allowing them to operate without relying on traditional order routing systems. The regulatory change would directly benefit infrastructure for tokenized stocks and crypto securities trading, with Securitize listed as the most directly advantaged party; Coinbase and Galaxy Digital may also benefit from expanded trading, custody, and market-making operations.
However, Benchmark noted that even with relaxed rules, key issues such as exchange registration, clearing and settlement, and custody frameworks remain unresolved, and the market continues to await the SEC’s potential future “innovation exemption” mechanism. The SEC has currently opened a 60-day public comment period, and Benchmark expects the final vote to take place in early 2027. (The Block)