Blockchain Association Supports SEC Rewrite of Outdated Crypto Rules

The Blockchain Association has expressed support for the SEC's proposal to rewrite Regulation NMS, Rules 611 and 610(e). This move aims to promote U.S. leadership in digital assets and adapt existing rules to modern market conditions.

Rules 611 and 610(e) were established over two decades ago, but their relevance has diminished as the crypto market has evolved. Rule 611, also known as the trade-through rule, created fragmented trading and increased costs by requiring investors to connect to multiple venues with protected quotes. Meanwhile, Rule 610(e), which prohibits locked and crossed markets, skewed price discovery due to inaccurate displayed prices after fees and rebates.

The Blockchain Association believes that removing these rules could improve competition, liquidity, and price discovery for the upcoming crypto market. They argue that the current market has become more automated, interconnected, and technologically advanced, and that tokenized securities require updated regulations. The association wants the SEC to consider factors beyond price, such as speed, costs, settlement, certainty, interoperability, and self-custody.