Blockchain Association Urges SEC to Scrap Two Legacy Trading Rules, Citing Tokenization Benefits

The Blockchain Association submitted a comment letter urging the SEC to rescind Rule 611 and Rule 610(e), two legacy trading rules under Regulation NMS adopted in 2005, in support of a June SEC proposal. The trade group argues the rules have failed their original purpose, imposed unnecessary costs on market participants for two decades, and constrain blockchain-based trading systems, and it asked the SEC to weigh efficiency gains from tokenized securities rather than price alone. The SEC has not finalized its decision, and any rule change would likely involve an extended review period with limited near-term market impact.