Benchmark has called the SEC's proposal to overhaul Regulation NMS the "most consequential" US crypto rule of the year, arguing that changes to equity market structure could ripple directly into digital asset trading.
The characterization, reported by The Block, frames a traditional securities regulation proposal as a pivotal moment for crypto market participants. That framing matters because it shifts attention away from token-specific enforcement actions and toward structural rules governing how markets operate.
At the center of the proposal is the potential rescission of Rule 611, the so-called "trade-through rule" that has governed order routing in US equity markets since 2005. The SEC published the full proposed rulemaking under Release No. 34-105655, opening a formal comment period.
Why a Stock Market Rule Matters for Crypto
Rule 611 requires brokers to route equity orders to the venue displaying the best price. Removing it would allow more competition among trading venues and potentially reshape how order flow is handled across US markets.
Benchmark's argument is that these structural changes would set precedents for how crypto exchanges, market makers, and trading platforms operate under any future federal market structure framework. If the SEC loosens best-execution routing requirements for equities, the logic extends to digital assets as well.
Commissioner Mark Uyeda addressed the proposal in a public statement, signaling that the current Commission views the existing NMS framework as due for modernization. That language suggests broad internal support for rethinking how order protection rules apply in faster, more fragmented markets.
For crypto firms already navigating questions around token classification and exchange registration, the NMS overhaul could define the regulatory template they eventually operate under. The proposal does not directly regulate crypto, but it establishes the philosophy the SEC will apply to market structure broadly.
How Traders and Crypto Firms May Read This Signal
The timing is notable. The proposal arrives while Congress continues debating standalone crypto legislation and while the SEC has shifted toward a more engagement-oriented posture with digital asset firms. A major equity market structure reform signals that the agency is willing to revisit longstanding rules, not just enforce existing ones.
For decentralized exchange protocols and centralized platforms alike, the outcome could influence how best execution, order routing, and venue competition are defined if crypto-specific market structure rules eventually materialize. Recent developments like new exchange listings for tokens like Solana underscore how global trading infrastructure continues to expand while US rules remain in flux.
Market participants tracking broader macro signals, including price action across major tokens and recent liquidation events, may find that structural regulatory shifts carry more lasting significance than short-term volatility.
Benchmark's characterization is an opinion, not a consensus view. But the underlying logic, that market structure rules shape trading behavior more durably than enforcement actions, is worth watching as the comment period unfolds. Crypto firms and traders should monitor the SEC's rulemaking docket for the final comment deadline and any interim guidance that clarifies how the proposal intersects with digital asset oversight.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.