According to Benchmark, the current Rule 611 mandates that transactions be executed in accordance with the National Best Bid-Ask Price (NBBO), while Rule 610(e) restricts locked and cross-quotations. While these rules are functional in traditional order book structures, they create structural constraints for Automated Market Maker (AMM) models used in decentralized finance markets.
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The report stated that removing these rules could reduce compliance costs for tokenized shares and on-chain trading infrastructures. This, it was suggested, could pave the way for easier integration of AMM-based trading models into the US capital market system.
Benchmark highlighted Securitize, which offers tokenized securities infrastructure, as the most direct beneficiary among companies that could potentially benefit. The report also noted that Coinbase and Galaxy Digital are among the companies that could benefit from the expansion of their trading, market-making, and custody infrastructure.
However, Benchmark noted that the proposed changes do not resolve all fundamental issues. According to the report, clarity is still needed on matters such as the exchange registration system, custody and clearing framework, and the legal status of DeFi-specific transaction models.
Industry representatives believe that a mechanism similar to a “conversion exemption” could play a critical role as a supportive policy in this process. It is stated that the SEC has initiated a 60-day public consultation period for the proposal, with the final vote potentially taking place in early 2027.
*This is not investment advice.