SEC · Galaxy Digital · The Block
SEC’s proposal to scrap key NMS rules a major unlock for tokenized US stocks: analysts
Compiled by KHAO Editorial — aggregated from 1 source. See llms.txt for citation guidance.
★ Tier-1 Source
The U.S. Securities and Exchange Commission has proposed eliminating core trade-through protections within Regulation NMS (National Market System), which could lift major barriers for tokenized U.S. stock trading in DeFi.
Key facts
- On Thursday, the SEC announced proposed rescissions of Rules 611 and 610(e) of Regulation NMS, established in 2005, to promote the long-term growth of U.S. markets
- The SEC has opened a 60-day public comment period on the proposal, which also includes related definitions in Regulation NMS
- Instead, they expect the SEC will offer these initial tokenization efforts exemptive relief from Rule 611
- If the rules are rescinded, the SEC would instead rely on FINRA Rule 5310's best execution duty, a broker-level, principles-based framework that can accommodate AMMs, according to Thorn
Summary
The U.S. On Thursday, the SEC announced proposed rescissions of Rules 611 and 610(e) of Regulation NMS, established in 2005, to promote the long-term growth of U.S. markets. "This proposal is intended to simplify market structure and reduce costs for market participants while allowing competition, innovation, and other market forces to shape the continuing evolution of our equity markets," said SEC Chairman Paul Atkins. Rule 611 prohibits the trade-through of NMS stocks, which means a trading center cannot execute a trade at a price inferior to a protected quotation, the best displayed bid or offer, available on another venue at the time of execution. The SEC has opened a 60-day public comment period on the proposal, which also includes related definitions in Regulation NMS.