Blockchain Association Backs SEC's Push to Repeal 2005 NMS Rules, Citing Tokenization Benefits

A set of market rules that's been in place for nearly two decades is now being called out by the very industry group it serves — for failing to accomplish its original purpose. That's the core of Blockchain Association's latest stance.

Blockchain Association has come out in support of a proposal from the U.S. Securities and Exchange Commission (SEC) to repeal the National Market System (NMS) rules. Established by the SEC in 2005, these rules govern the trading structure and disclosure requirements of the U.S. stock market and have been in effect for nearly 20 years.

In its statement, Blockchain Association said the rules have "failed to achieve their intended purpose." The group tied this position to the potential benefits of tokenization, though the public materials didn't go into detail on which specific provisions have fallen short, or exactly how tokenization would stand to benefit from the repeal.

No further details have been disclosed at this time, including the specific language of the SEC's proposal or the timeline for next steps.