Blockchain Association Backs SEC Plan to Revamp Stock-Market Rules
The Blockchain Association has thrown its weight behind the US Securities and Exchange Commission's (SEC) proposal to repeal existing stock-market rules. The group submitted a comment letter on August 18 in support of scrapping parts of Regulation NMS, specifically Rules 611 and 610(e). Adopted in 2005, these rules have failed to achieve their original purpose, the association claimed.
The Blockchain Association argued that removing the rules could simplify market structure and lower trading costs for participants. The group also pointed out that tokenization of traditional financial assets on public blockchains is spreading rapidly, and existing rules are constraining its development.
In its letter, the Blockchain Association emphasized that evaluating securities trading should consider not only price but also efficiencies offered by tokenized securities. By repealing the rules, it hopes to support further growth in the tokenized securities market.