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Blockchain Association urges SEC to scrap outdated Regulation NMS rules
The group backed the SEC plan to rescind Rules 611 and 610(e), arguing they add unnecessary costs and constrain tokenized market infrastructure.
The Blockchain Association has urged the Securities and Exchange Commission to move forward with its proposal to scrap outdated Regulation National Market System, or NMS, rules, arguing they no longer meet their intended goals as crypto-linked tokenization grows. In a Monday letter to the SEC, the industry group supported rescinding Rules 611 and 610(e), which were established in 2005. Rule 611 is designed to provide intermarket protection against trade-throughs for NMS stocks, while Rule 610(e) limits the display of locked and crossed quotations, according to The Block.
The association said Rules 611 and 610(e) have “failed to achieve their stated purposes” and have instead imposed substantial, unnecessary costs on market participants over the past two decades. It also argued the current framework inhibits development of tokenized market infrastructure, including tokenized securities markets generally.
The SEC proposed the rescission in June, saying the changes could simplify market structure and reduce costs for market participants. The public comment period for the proposal ended on Monday, The Block reported.