According to ChainCatcher, citing The Block, investment bank Benchmark said in its latest research report that the U.S. Securities and Exchange Commission’s proposal to repeal Rule 611 and Rule 610(e) under Regulation NMS could become the “most decisive regulatory change” affecting crypto and tokenized asset market structure in 2026. The proposal was released on June 11 and targets U.S. equity market trade protection and quotation constraint rules that have been in place for nearly 20 years.
The SEC Proposal Targets Trade Protection and Quotation Constraints
The SEC said the move is intended to reduce trading costs and provide more room for market competition and technological innovation. Benchmark explained that the existing Rule 611, known as the order protection rule, requires trades to follow the national best bid and offer, or NBBO. Rule 610(e), meanwhile, restricts “locked” and “crossed” quotations. These mechanisms have long been part of the traditional securities market matching framework.
Benchmark said these rules are effective within conventional matching systems, but they create structural constraints for automated market maker, or AMM, models used in decentralized finance. The report said that if the rules are repealed, compliance barriers for tokenized stocks and on-chain trading systems would be significantly reduced, making it easier for AMM-based trading models to connect with the U.S. capital market system.
Securitize, Coinbase and Galaxy Digital Named in the Report
On potential beneficiaries, Benchmark specifically highlighted Securitize, describing it as the most direct beneficiary because of its role as a tokenized securities infrastructure provider. The report also said Coinbase and Galaxy Digital would benefit from the expansion of trading, market-making and custody infrastructure.
Benchmark also stressed that the rule changes do not resolve every core issue. Exchange registration requirements, custody and clearing frameworks, and the legal status of DeFi-native trading still require further clarification. The report added that the industry generally expects a later “innovation exemption mechanism” to become a key supporting policy. The SEC has opened a 60-day public comment period for the proposal, and a final vote is expected in early 2027.