Benchmark says the SEC’s proposal could lower legal obstacles for tokenized stocks and on-chain trading, with Securitize, Coinbase and Galaxy Digital among firms that may benefit if the plan advances.
The U.S. Securities and Exchange Commission has proposed rescinding Rules 611 and 610(e) of Regulation NMS, reopening a core part of U.S. equity market structure as trading technology evolves. Benchmark Equity Research said the June 11 proposal could remove key legal barriers to tokenized stocks and on-chain trading, highlighting Securitize as the most direct potential beneficiary and pointing to Coinbase and Galaxy Digital as firms that could also gain. Rule 611, widely known as the Order Protection Rule, has been a longstanding pillar of equity trading rules. The proposal does not amount to approval for tokenized stocks or a finalized framework for tokenized securities, but it is significant because traditional equity-trading requirements are being reconsidered as tokenized securities, automated market makers, and distributed trading systems move deeper into policy discussions. The SEC has opened a 60-day comment period, and Benchmark analyst Mark Palmer expects a final vote in early 2027. If the agency follows through, more flexible market-structure rules could give tokenized equity products greater room to develop within regulated frameworks. If the proposal is narrowed or fails to advance, those products may remain constrained by existing structures.