Conflicting letters show industry divide on SEC stock market rule overhaul

The Blockchain Association and Citadel Securities submitted contrasting letters to the U.S. Securities and Exchange Commission on August 17, 2026, offering competing visions for the future of stock market rules as the agency considers a major overhaul. The submissions marked the close of the public comment period on the SEC's proposal to eliminate two foundational trading regulations, with one industry group championing the change to pave the way for digital assets and a major market maker warning it could severely harm retail investors.

At the center of the debate are Rules 611 and 610e of Regulation NMS, established in 2005. Rule 611, often called the trade-through rule, requires brokers to generally execute trades at the best available price displayed on any public exchange. Rule 610e prevents exchanges from displaying locked or crossed quotes, where the best bid equals or exceeds the best offer. On June 11, 2026, the SEC proposed rescinding both rules, arguing they have become outdated in today's faster, more automated markets and that eliminating them could simplify market structure and reduce costs.

The Blockchain Association, in its letter, expressed strong support for...