The Blockchain Association has submitted a comment letter to the U.S. Securities and Exchange Commission (SEC), urging the regulator to rescind outdated provisions of Regulation NMS — specifically Rules 611 and 610(e). The industry group argues that current market rules should promote innovation rather than remain tied to obsolete frameworks, a shift that could ease the integration of modern trading technologies and practices into the crypto landscape. The association shared details of the filing in its official tweet.

Inside the Move

In the letter, the Blockchain Association highlights the need to update regulations that were established more than two decades ago. Regulation NMS was adopted by the SEC in 2005 to govern the U.S. national market system for equities, and Rule 611 is commonly known as the order protection rule because it restricts "trade-throughs" — executions at prices inferior to protected quotations displayed by other trading centers. The group stresses that the existing rules do not align with current technological advancements in trading, particularly with the rise of tokenized securities, digital representations of traditional financial instruments issued and traded on blockchain networks. The letter encourages the SEC to modernize its best execution guidance and to recognize that on-chain trading can meet regulatory requirements. The call to action comes as the crypto market increasingly seeks to evolve beyond traditional financial infrastructures.

Quick Take

• The Blockchain Association submitted a comment letter to the SEC.
• The letter supports rescinding Rules 611 and 610(e) of Regulation NMS.
• The group proposes modernizing best execution guidance.
• The association emphasizes the viability of on-chain tokenized securities.
• The goal is to facilitate innovation in financial markets.

What the Data Shows

The broader crypto market currently exhibits mixed signals, with varied momentum across major assets. The Blockchain Association's initiative arrives at a time of growing institutional interest, and many market participants are closely monitoring regulatory changes that could affect trading dynamics. The push for modernization reflects a significant shift in how the industry views its regulatory landscape.

The Blockchain Association represents a range of stakeholders across the cryptocurrency industry, advocating for policies that promote innovation and growth. Because the SEC holds jurisdiction over market structure and compliance, the group's advocacy for updated trading rules carries particular significance for the future of digital asset trading. Comment letters filed in SEC proceedings become part of the public record the agency weighs as it evaluates potential rule changes, which is a primary channel through which industry groups press for structural reform.

What Comes Next

Attention now turns to the SEC's response to the Blockchain Association's letter, which could set a precedent for future regulatory changes. Modernized rules may encourage greater participation from institutional investors and could also incentivize further technological advancements in trading platforms. The ongoing evolution of regulations will be crucial in shaping the market landscape in the coming months.