Blockchain Association Supports SEC’s Regulation NMS Rewrite for Digital Assets

The letter highlighted the technological shift that has occurred since the rules were adopted. Blockchain-based markets operate 24/7 with near-instant settlement, transparent records, and self-custody. They use automated market makers, on-chain order books, and intent-based matching systems – mechanisms that differ from traditional exchanges. The association argued that Rules 611 and 610(e) may not be suitable for on-chain markets and could hamper innovation.

The association urged the SEC to consider factors beyond price when designing rules for digital assets. It pointed to speed, settlement certainty, interoperability, and self-custody as critical elements. The letter also asked the SEC to clarify how tokenized securities can trade and settle using stablecoins. Regulation should not prevent blockchain-based markets from integrating tokenized assets, stablecoins, and on-chain settlement, the group said.

The proposal aligns with the Administration’s goal of promoting U.S. leadership in digital assets and financial technology, the letter noted. Chairman Paul Atkins recently proposed a “Regulation Crypto” framework. A vote on that plan, originally scheduled for Aug. 14, has been postponed so lawmakers can first pass the CLARITY Act.