Benchmark says SEC’s NMS proposal is the ‘most consequential’ US crypto rule this year
Benchmark said the SEC's proposal last week to rescind Rules 611 and 610(e) is the year's "most consequential" U.S. crypto rule.
Investment firm Benchmark has labeled the SEC's recent National Market System (NMS) proposal as the "most consequential" U.S. crypto regulation of 2024. The assessment comes following the Securities and Exchange Commission's proposal last week to rescind Rules 611 and 610(e), which are key components of the current market structure framework.
Rules 611 and 610(e) are part of the SEC's Regulation NMS, originally designed to ensure fair and efficient trading across traditional securities markets. Rule 611, known as the Order Protection Rule, requires trading centers to establish policies to prevent trade-throughs of protected quotations. Rule 610(e) relates to market data access and pricing requirements for trading centers.
The proposed rescission could significantly reshape how crypto trading platforms operate and compete in the U.S. market. Current NMS rules have created compliance burdens and structural limitations that have influenced how digital asset exchanges design their systems and pricing models. Removing these requirements could lead to increased innovation in market structure design and potentially lower costs for market participants.
Industry observers will be monitoring the public comment period and subsequent SEC deliberations closely. The proposal's ultimate adoption could set important precedents for how traditional securities regulations apply to digital asset markets, potentially influencing broader regulatory approaches to crypto market structure.
Source: The Block
