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 the market structure of crypto and tokenized assets in 2026. The proposal was released on June 11 and seeks to remove U.S. equity-market trade protection and quotation constraint rules that have been in place for nearly 20 years.
The SEC targets trade protection and quote constraints
The SEC said the move is intended to lower trading costs and create more room for market competition and technological innovation. Benchmark explained that Rule 611, known as the order protection rule, requires trades to follow the National Best Bid and Offer, or NBBO. Rule 610(e), meanwhile, limits “locked” and “crossed” quotations. These mechanisms have functioned within traditional matching systems, but they create constraints when applied to on-chain trading and new market structures.
Benchmark said Rule 611 and Rule 610(e) are effective in the traditional matching framework, yet they impose structural constraints on automated market maker, or AMM, models used in decentralized finance. AMM-based trading does not rely on a traditional order book or centralized quotation protection mechanism, which makes regulatory adaptation more difficult under the current rule framework when such systems seek access to the U.S. capital market structure.
Securitize, Coinbase and Galaxy Digital are named in the report
The report said that if the relevant rules are repealed, compliance barriers for tokenized stocks and on-chain trading systems would be significantly reduced. That would make it easier for AMM-based trading models to connect with the U.S. capital market system. Among potential beneficiaries, Benchmark specifically highlighted Securitize, describing it as the most direct beneficiary because of its role as an infrastructure provider for tokenized securities.
Benchmark also said Coinbase and Galaxy Digital would benefit from the expansion of trading, market-making and custody infrastructure. At the same time, the report emphasized that the rule changes do not resolve every core issue. Exchange registration rules, custody and clearing frameworks, and the legal status of DeFi-native trading still require further clarification.
Industry participants generally expect a future “innovation exemption mechanism” to become a key supporting policy. The SEC has opened a 60-day public comment period for the proposal. A final vote is expected to take place in early 2027.