Blockchain Association Backs SEC’s NMS Overhaul, Pointing to Tokenization Benefits

TL;DR:

• The Blockchain Association submitted a letter to the SEC supporting the elimination of Rules 611 and 610(e) of Regulation NMS.
• Both rules, established in 2005, “failed to achieve their stated objectives” and imposed unnecessary costs for two decades, according to the group.
• The association asked the SEC to recognize that tokenized securities on public blockchains can meet existing regulatory requirements.

The Blockchain Association submitted a formal letter to the U.S. Securities and Exchange Commission (SEC) in support of the proposal to eliminate two rules from Regulation National Market System (NMS) considered outdated, arguing that their rescission would directly benefit the development of asset tokenization.

The rules in question are Rule 611, which requires trading platforms to respect the most favorable quotes available on other markets, and Rule 610(e), which restricts the display of locked or crossed quotes. Both were established in 2005 and, according to the association, “failed to achieve their stated objectives” and imposed substantial and unnecessary costs on market participants for twenty years.

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