Benchmark Equity Research said the U.S. Securities and Exchange Commission’s market structure reform proposal, introduced on June 11, stands among the most consequential regulatory measures for the U.S. crypto industry this year. The proposal seeks to repeal Rule 611 and Rule 610(e) under Regulation NMS, two core rules that have governed equity trade routing and execution since 2005. Benchmark’s view centers on how those rules have shaped traditional U.S. stock trading and how their removal would affect tokenized stocks and on-chain trading infrastructure.
Rule 611 and Rule 610(e) sit at the center of the proposal
Rule 611, known as the order protection rule, requires trading venues to avoid executing trades at prices worse than protected quotations available in other markets. In practice, it enforces the National Best Bid and Offer, or NBBO, framework. Rule 610(e) bars locked and crossed market structures, placing restrictions on overlapping quotes and price mismatches. According to Benchmark, these rules were designed for the conventional equity market but have long limited the development space for tokenized equities and blockchain-based trading systems.
Benchmark analyst Mark Palmer said that repealing the rules would remove key legal barriers affecting decentralized finance trading models such as automated market makers, or AMMs. Under that view, AMM-based systems would be able to operate without relying on the traditional order routing framework used in existing equity markets. The analysis links the SEC’s NMS reform directly to tokenized stock markets, DeFi trading mechanisms and crypto securities infrastructure.
Securitize, Coinbase and Galaxy Digital named in Benchmark’s analysis
Benchmark said the rule changes would directly benefit tokenized stock and crypto securities trading infrastructure. Securitize was identified as the most direct beneficiary. Coinbase and Galaxy Digital were also mentioned as companies that would benefit from expansion in trading, custody and market-making businesses tied to the market structure shift.
Benchmark also noted that several central questions remain unresolved even if the rules are relaxed. These include exchange registration, clearing and settlement, and custody frameworks. The market is still waiting for the SEC’s follow-up “innovation exemption” mechanism. The SEC has opened a 60-day public comment period, and Benchmark expects the final vote to take place in early 2027.