Blockchain Association urges SEC to drop NMS rules for tokenized markets

The Blockchain Association has backed a U.S. Securities and Exchange Commission proposal to repeal two market rules adopted in 2005, arguing that their removal could make it easier for tokenized securities to trade on public blockchains. Summary The Blockchain Association backed the SEC’s proposal to repeal Rules 611 and 610(e) of Regulation NMS. The group said the two rules impose unnecessary costs and can restrict the development of tokenized securities markets. The association urged the SEC to recognize onchain execution as a compliant way to achieve fair and efficient securities trading. The SEC’s public comment period on the proposal ended on Aug. 17. The Blockchain Association said in an Aug. 17 comment letter that the SEC should move ahead with plans to rescind Rules 611 and 610(e) of Regulation National Market System, or Regulation NMS, as the existing requirements no longer fit the way modern securities markets operate. The filing arrived on the final day of the SEC’s public comment period for the proposal, which was first issued on June 11. The agency is considering removing the two rules along with related definitions in Rule 600 and making corresponding changes to other...