SEC proposal to repeal stock market rule could benefit crypto, says Benchmark

A proposal by the U.S. Securities and Exchange Commission (SEC) to repeal regulations governing stock market structure, including the best execution rule, could be a highly influential development for the cryptocurrency industry, according to U.S. investment bank Benchmark. The bank suggests that repealing the rule could resolve legal and regulatory conflicts between DeFi's Automated Market Maker (AMM) mechanisms, which do not use traditional order book systems, and the trading of stock tokens. According to The Block, Benchmark identified Securitize, the infrastructure provider for BlackRock's tokenized money market fund BUIDL, as the most direct beneficiary. Coinbase (COIN) and Galaxy Digital (GLXY) were also named as potential beneficiaries. However, Benchmark noted that challenges remain, as the proposal is separate from issues concerning alternative trading system registration, custody, and clearing and settlement frameworks. The SEC is expected to collect public comments for 60 days before discussing a vote early next year.