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 seeks to remove U.S. equity market trade-through protection and quotation constraints that have been in place for nearly 20 years.
SEC targets two long-standing NMS rules
The SEC said the proposal is intended to reduce trading costs and create more room for market competition and technological innovation. Benchmark explained that the current Rule 611, also 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 rules have shaped how quotes and executions work in the traditional matching-based U.S. stock market structure.
AMMs and tokenized equities face fewer structural constraints
Benchmark said the two rules are effective within conventional trading 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 The report said that if the rules are repealed, compliance barriers for tokenized stocks and on-chain trading systems would be significantly reduced. It would also make it easier for AMM-based trading models to connect with the U.S. capital markets framework.
On the beneficiary side, Benchmark highlighted Securitize, describing the company as a tokenized securities infrastructure provider that would benefit most directly from the regulatory space created by the proposed change. The report also named Coinbase and Galaxy Digital, saying both would benefit from the expansion of trading, market-making and custody infrastructure. The assessment centers on the infrastructure needed for tokenized securities issuance, on-chain trading systems and related market connectivity.
Benchmark also stressed that repealing the two rules would not resolve every core issue. The exchange registration system, custody and clearing framework, and the legal status of DeFi-native trading still require further clarification. The industry broadly 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, while the final vote is being discussed in the report around early 2027.