SEC Proposes Pivotal Rule Change for DeFi and Tokenized Assets

The U.S. Securities and Exchange Commission (SEC) has put forth a proposal to repeal Rules 611 and 610(e) under its Regulation National Market System (NMS). This initiative signifies a potentially pivotal shift in the regulatory landscape for tokenized securities and the decentralized finance (DeFi) ecosystem.

Announced on June 11, this proposal seeks to eliminate US stock trading protection and bid restriction rules that have been in effect for approximately two decades. The SEC stated that this action is intended to reduce trading costs, enhance market competition, and foster technological innovation within financial markets. While the existing Rules 611 and 610(e) have proven effective for traditional matching systems, they have imposed structural limitations on automated market maker (AMM) models, which are fundamental to decentralized finance.

Market analysts anticipate that the repeal of these rules could significantly lower compliance barriers for tokenized stocks and on-chain trading systems. This would facilitate easier integration of AMM-based trading models into the US capital market system. Such a development could potentially unlock new investment flows and accelerate innovation within the DeFi sector, fostering greater interoperability across platforms. However, the broader crypto market continues to experience volatility, influenced by Federal Reserve decisions and other macroeconomic factors.

This regulatory proposal is seen as reflecting a significant paradigm shift in the US approach to crypto asset markets. The SEC, which historically often pursued a strategy of 'regulation by enforcement,' now signals a transition towards a more 'framework-focused regulation.' This change was further underscored by the 68-page interpretive rule jointly issued by the SEC and the Commodity Futures Trading Commission (CFTC) in March 2026, which provided the first official classification for crypto assets under federal securities laws. Additionally, initiatives like 'Project Crypto,' announced by SEC Chairman Paul Atkins in August 2025, reinforce the US's vision to transition its financial markets to an on-chain structure.

Investment banks such as Benchmark suggest that this proposal could be the 'most decisive regulatory modification' impacting the crypto and tokenized asset market structure in 2026. Industry experts believe this step could usher in a new era of growth for DeFi protocols, although fundamental issues such as exchange registration, custody, and clearing frameworks still require further clarification. Markets will closely monitor the SEC's 60-day public comment period for this proposal and subsequent regulatory actions.