SEC moves to scrap Reg NMS Rules 611 and 610(e) to free up…

The Securities and Exchange Commission has proposed rescinding Rules 611 and 610(e) of Regulation NMS, a move aimed at reducing compliance costs and allowing competitive and market forces to shape the future structure of US equity markets. Rule 611, known as the Order Protection Rule or "trade-through" rule, currently requires brokers to route orders to the venue displaying the best price — a mandate critics argue has entrenched incumbent exchanges and stifled innovation. Rule 610(e) governs access fees between trading venues.

Why it matters

Regulation NMS has been the foundational ruleset governing US equity market structure since 2005. Removing its two most contested pillars signals a significant philosophical shift at the SEC toward deregulation and venue-level competition. For crypto markets, which have long operated without NMS-style mandates, the move is a data point in a broader regulatory trend: the current administration is rewiring legacy financial infrastructure toward lighter-touch oversight. That posture has direct implications for how digital asset trading venues may be regulated — or not — going forward.

Market impact

Alternative trading systems, dark pools, and newer execution venues stand to benefit most if the proposal advances, as the Order Protection Rule has historically funneled order flow toward lit exchanges. Traditional exchange operators like NYSE and Nasdaq could face increased competitive pressure. For crypto-native investors, the signal is that Washington's appetite for prescriptive market-structure mandates is shrinking — a backdrop that broadly supports the case for less restrictive digital asset regulation.