SEC May Allow Crypto Platforms to Trade Stocks: Major Rule Change Coming

Big changes could be coming to how stocks are traded in America, and crypto platforms might be the biggest winners.

The Securities and Exchange Commission (SEC - the government agency that oversees stock markets) has proposed eliminating two 20-year-old rules that currently prevent crypto exchanges from trading stocks. Investment firm Benchmark calls this the "most important crypto regulation of the year."

### What's Happening?

Right now, strict rules control how stocks must be traded: • Rule 611 requires all stock trades to get the best available price across all exchanges • Rule 610(e) prevents certain types of price conflicts between exchanges

These rules make it impossible for crypto platforms (like decentralized exchanges that use automated trading systems) to offer stocks because they work differently than traditional stock exchanges.

### Why This Matters

If these rules are removed, crypto platforms could start offering "tokenized stocks" - digital versions of regular stocks that trade on blockchain networks. This would mean: • You could buy stocks on crypto exchanges • Stocks could trade 24/7 like crypto • New trading features from the crypto world could apply to stocks

Benchmark analysts believe companies like Securitize, Coinbase, and Galaxy Digital could benefit most from these changes, as they're already positioned to offer tokenized securities.

### The Bottom Line

This proposal represents a major shift in how regulators view the intersection of traditional finance and crypto technology. While it's just a proposal for now, it signals that the SEC may be warming up to blockchain technology for traditional asset trading.

This is an AI-generated summary. Read the original article at: https://www.theblock.co/post/404768/benchmark-sec-nms-proposal-most-consequential-us-crypto-rule-this-year?utm_source=rss&utm_medium=rss