Benchmark Says Crypto Industry Could Gain Most if SEC Scraps Market-Structure Rules
Summary
- Benchmark said the cryptocurrency industry could be the biggest beneficiary if the SEC moves ahead with scrapping stock market-structure rules.
- Benchmark said removing the rules could ease regulatory uncertainty around decentralized finance (DeFi) automated market maker (AMM) models and tokenized stock trading.
- Benchmark said Securitize, Coinbase (COIN) and Galaxy Digital (GLXY) are among the companies that could benefit.
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The cryptocurrency industry could be the biggest beneficiary if the US Securities and Exchange Commission moves to scrap stock market-structure rules, Benchmark said.
The SEC’s proposal to eliminate rules including the Best Execution requirement could have a significant impact on the digital-asset industry, The Block reported on June 15, citing the US investment bank.
Benchmark said removing those rules could ease regulatory uncertainty around decentralized finance automated market maker, or AMM, models that do not use traditional order books. It said the same could apply to trading in tokenized stocks.
Securitize, which provides the infrastructure for BlackRock’s tokenized money market fund BUIDL, was identified as the most direct beneficiary.
Coinbase (COIN) and Galaxy Digital (GLXY) were also named as companies that could benefit.
Benchmark added, however, that the discussion around repealing those rules would not resolve other core regulatory issues, including alternative trading system registration, custody, clearing and settlement frameworks.
The SEC is set to collect market feedback over the next 60 days before discussing early next year whether to vote on the proposal.
