Blockchain Association Seeks SEC Repeal of Regulation NMS Rules

The Blockchain Association has called on the U.S. Securities and Exchange Commission (SEC) to rescind two provisions of Regulation NMS, arguing that they restrict tokenized securities markets.

The rules in question are Rules 611 and 610(e), which were adopted in 2005 to connect fragmented U.S. equity markets and protect displayed prices across exchanges.

The Blockchain Association argues that these rules, written for conventional stock exchanges, can obstruct tokenized markets using automated and continuous blockchain settlement.

The group claims that trading systems have become faster, more automated, and interconnected since the rules were adopted, and that regulation should allow firms to consider differences in execution, ownership records, and settlement through blockchain systems.