Benchmark Says Crypto Industry May Benefit Most if SEC Scraps Equity Market Rules
Summary
- Benchmark said the cryptocurrency industry could be the biggest beneficiary if the US Securities and Exchange Commission, or SEC, moves ahead with scrapping equity market-structure rules.
- Benchmark said that if the rollback takes effect, regulatory uncertainty surrounding DeFi automated market maker (AMM) structures and tokenized stock trading could ease.
- Benchmark identified Securitize, which provides the infrastructure for BlackRock’s tokenized money market fund (BUIDL), along with Coinbase (COIN) and Galaxy Digital (GLXY), as potential beneficiaries.
Forecast Trend Report by Period
The cryptocurrency industry could be the biggest beneficiary if the US Securities and Exchange Commission moves to scrap equity market-structure rules, according to an analysis.
The Block reported on June 15 that US investment bank Benchmark expects the SEC’s proposal to eliminate stock-market rules, including the Best Execution requirement, to have a substantial impact on the digital-asset industry.
Benchmark said removing those rules could ease regulatory uncertainty around decentralized finance automated market maker, or AMM, structures that do not use traditional order books. It could also reduce uncertainty surrounding tokenized stock trading.
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 cited as potential beneficiaries.
Benchmark added that the debate over repealing those rules would not resolve other key regulatory issues, including alternative trading system, or ATS, registration, custody, clearing and settlement frameworks.
The SEC is expected to collect market feedback over the next 60 days before discussing early next year whether to vote on the proposal.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
