SEC Proposes Scrapping Rule 611, Rule 610(e) to Unlock Tokenized Equities Trading

According to Benchmark Equity Research analysis on Monday, the Securities and Exchange Commission's June 11 proposal to rescind Rule 611 and Rule 610(e) under Regulation NMS is the "most consequential" U.S. crypto rule this year, as it would remove legal obstacles to tokenized equities trading on decentralized finance platforms. The 20-year-old rules have prevented automated market makers from operating with tokenized securities by enforcing trade-through protections and preventing crossed markets.

Benchmark identified Securitize as the most direct beneficiary, given its role as a regulated tokenization platform for securities including BlackRock's BUILD initiative. Coinbase Global and Galaxy Digital were also cited as potential beneficiaries due to their positions in trading infrastructure and digital asset market-making. The SEC has opened a 60-day public comment period, with a vote expected in early 2027.