SEC takes aim at 20-year-old rules, Tokenized stocks next?

Crypto Insight Summary: * The SEC has proposed scrapping Reg NMS Rules 611 and 610(e), opening a 60-day comment period with final changes expected in early 2027. * SEC Chairman Paul Atkins argued the rules have increased market fragmentation and costs rather than improving efficiency. * The move is part of a broader push to reduce regulatory barriers and revive U.S. **On June 11, the United States Securities and Exchange Commission (SEC) proposed to repeal rules 611 and 610(e) of the Reg NMS. The two regulations represent key regulations governing the equity markets in the United States.** A 60-day public comment period is now open, with the revised regulation expected to be completed in the first quarter of 2027, according to TD Cowen managing director Jaret Seiberg. Rule 611, referred to as the trade-through or order protection rule, does not allow anyone to enter an order for any stock in question below the prices available on other trading facilities. While Rule 610(e) does not allow any exchange to provide quotations that will create locked or crossed quotations compared to competing markets. The adoption of rules 611 and 610 was meant to ensure that there was no occurrence of a bad execution price on the network of fragmented exchanges. The trade-through rule has been opposed by Atkins since its first enactment by the SEC over 20 years ago. He said that there is a decline of about 40% in the number of US-listed companies since the mid-1990s, and that there is a need to eliminate “regulatory frictions” that made companies retreat from public exchanges. Crypto Insight Analysis: Direction: Neutral Impact: Minor Impact Horizon: Long-term (1 quarter-1 year) Reasoning: SEC proposal to revise equity market rules may reduce fragmentation but has limited direct impact on crypto markets.