Blockchain Association backs SEC move to scrap parts of Regulation NMS and calls for recognition of onchain tokenized securities trading

Blockchain Association has urged the U.S. Securities and Exchange Commission to move ahead with its proposal to eliminate Rule 611 and Rule 610(e) under Regulation NMS. In a comment letter to the SEC, the group said the two rules, both adopted in 2005, did not achieve their original purpose. Instead, it said, they have added costs for market participants over the past 20 years. The association argued that the current framework is now constraining the development of tokenized market infrastructure as market automation expands and more assets are tokenized on public blockchains. It also called on the SEC to update its “best execution” guidance. According to the group, the regulator should formally recognize that tokenized securities trading on public blockchains can satisfy regulatory requirements, and should acknowledge onchain execution as a compliant, fair and efficient way to execute trades.