Blockchain Association tells SEC to scrap 2005 rules that block tokenized securities. The trade group wants best-execution standards updated for onchain trading.
Alpha Score of 50 reflects moderate overall profile with moderate momentum, poor value, moderate quality, strong sentiment.
The Blockchain Association wants the SEC to kill two old market-structure rules it says are blocking tokenized securities.
In a formal letter submitted Monday, the trade group backed the SEC's June proposal to scrap Rule 611 – the trade-through rule – and Rule 610(e), which restricts locked or crossed quotes. Both were written in 2005, before crypto existed.
The association told the SEC the rules "failed to achieve their stated objectives" and have cost the market unnecessarily for two decades. The public comment period closed the same day.
Today's markets are "faster, more automated, and more interconnected" than they were in 2005, the group wrote on X. Tokenization is accelerating that evolution. "A revolutionary shift is underway today: the representation of traditional assets on public blockchains," the letter said.
The trade group argued that the existing rules "inhibit" tokenized market infrastructure. An modern best-execution standard, the association said, should consider the specific benefits of tokenized securities – including settlement speed and transparency – not just price.
"The SEC should recognize the use of an onchain execution mechanism as a valid means of achieving fair and efficient execution," the letter concluded.
The SEC's proposal, published in June, said eliminating the two rules could simplify market structure and reduce compliance costs. It did not mention tokenization.
Industry watchers said the SEC's Regulatory Flexibility Act analysis – which the Blockchain Association called "outdated" – failed to account for the growth of tokenized assets. The group wants the SEC to run a new analysis that factors in blockchain-based securities.
Cboe BZX Exchange on Aug. 10 filed its own proposed rule change, seeking SEC approval to list 3x daily Bitcoin and Ether ETFs. That filing is separate but shares a regulatory context: the SEC is weighing multiple rule changes that affect how digital assets trade alongside traditional equities.
The SEC on Friday canceled an open meeting scheduled for Aug. 14 that had been set for crypto rule review. A new date has not been announced.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.