SEC NMS Proposal to Rescind Rules 611 and 610(e) Called 'Most Consequential' US Crypto Rule of Year
15 Jun 2026 · 15:33 UTC · The Block · Original source
Summary
Benchmark has designated the SEC's recent proposal to rescind Rules 611 and 610(e) as the most consequential U.S. cryptocurrency regulation of 2026. These rules, which relate to order protection and best execution requirements in National Market System (NMS) regulations, have been extended to affect cryptocurrency trading venues. Their potential rescission would reduce compliance obligations for crypto trading platforms and significantly alter the regulatory framework governing cryptocurrency market structure in the United States. The proposal represents a substantial shift in how the SEC approaches crypto market regulation and compliance requirements.
Why it matters
Rescinding NMS rules would eliminate certain compliance requirements that traditionally applied to equity markets but have been extended to crypto trading venues. This creates a regulatory arbitrage advantage for US crypto exchanges compared to traditional equity exchanges, potentially attracting more trading volume and participants. The mechanism is regulatory clarity and reduced compliance costs enabling more efficient market operations. Bitcoin, being institutional-focused and macro-sensitive, would respond primarily to the structural positive (reduced friction) with moderate conviction. Altcoins would see more volatility due to their higher sensitivity to regulatory news and potential infrastructure changes. Key uncertainties include: (1) Whether the SEC's proposal will be approved or face political opposition; (2) Implementation timeline and whether rules are fully rescinded or modified; (3) Whether traditional finance regulators will follow suit; (4) Actual impact on trading behavior and market efficiency. The predictions assume eventual approval and positive market interpretation, with gradually increasing impacts as markets process implications over longer timeframes. Confidence is moderate because the actual market effect depends on multiple regulatory and political unknowns beyond the immediate announcement.
Expected impact
The SEC's proposal to rescind NMS Rules 611 and 610(e) represents a significant regulatory development affecting cryptocurrency market structure in the United States. Rule 611 concerns order protection requirements, while Rule 610(e) addresses best execution obligations. Rescission of these rules would reduce compliance burden on crypto trading platforms, potentially lowering operational costs and enabling more flexible market structures. The near-term impact is modest as markets digest the announcement, but longer-term effects could be substantial as trading infrastructure adapts. Bitcoin, as the macro-focused asset, would see gradual positive pressure primarily from reduced regulatory friction and potential improved market access. Altcoins, more sensitive to regulatory changes and trading infrastructure evolution, would likely experience more pronounced reactions across both directions as specific implementation details emerge. The net sentiment is cautiously positive, as reduced regulatory burden is generally favorable for crypto markets, though uncertainty about political approval and timing tempers immediate price reactions.