A proposal by the U.S. Securities and Exchange Commission to scrap two long-standing equity market rules could become the most significant regulatory shift for crypto-linked markets this year, according to Benchmark Equity Research. The move is expected to remove key barriers that have limited the growth of tokenized equities on public blockchains.
The SEC on June 11 proposed eliminating Rule 611 and Rule 610(e) under Regulation NMS, a framework introduced in 2005 to govern how trades are routed and executed in U.S. equity markets. Regulators say the goal is to simplify market structure, reduce costs, and foster competition and innovation.
Removing constraints on tokenized trading
Benchmark analyst Palmer said repealing the rules would lift the primary legal restrictions that currently prevent tokenized stocks from trading on automated market makers, a core component of decentralized finance.
Rule 611, known as the Order Protection Rule, requires trades to be executed at the best available quoted price across venues. Rule 610(e) prohibits markets from displaying overlapping buy and sell prices. Together, these provisions enforce a system built around order books and routed trades.
That structure conflicts with decentralized trading systems, which rely on continuous pricing curves instead of discrete orders. As a result, such platforms cannot integrate with the National Best Bid and Offer framework required under current rules.
Implications for crypto and defi markets
Automated market makers are projected to handle more than 90% of decentralized trading volume in 2026, yet they remain incompatible with existing regulations. At the same time, decentralized finance protocols hold between $130 billion and $140 billion in total value, highlighting the scale of activity operating alongside traditional financial systems.
The broader tokenized asset market is also expanding, with an estimated value of $4.81 billion in 2026 and projections exceeding $24 billion by 2035. The SEC’s proposal targets a market structure designed before these technologies emerged, signaling a potential shift toward accommodating blockchain-based models.
Firms positioned to benefit
Benchmark identified Securitize as one of the companies most directly positioned to benefit from the changes, given its role in providing regulated infrastructure for tokenized securities. The firm has more than $4 billion in tokenized assets under management as of April 2026 and has expanded its blockchain footprint, including to Solana.
Coinbase Global and Galaxy Digital could also see operational advantages due to their exposure to digital asset trading and brokerage services, according to the research.
Regulatory uncertainty remains
Despite the potential upside, key questions remain around how tokenized and decentralized platforms would meet existing requirements for registration, custody, and settlement. Benchmark noted that the market is looking for a possible innovation exemption to address these issues if the proposal moves forward.
The SEC has opened a 60-day public comment period, with a final decision expected in early 2027. Attention is now turning to submissions from exchanges, technology firms, and industry groups, which are expected to signal how traditional market participants may adapt to — or resist — a system that could challenge order-book-based trading models.
Explore how real-world assets move on‑chain and understand tokenized equities in today’s evolving regulatory landscape.
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