Blockchain Association Urges SEC to Scrap 2005 NMS Rules, Citing Tokenization Opportunity
The Blockchain Association has formally backed the SEC's proposal to eliminate National Market System rules established in 2005, arguing they have failed their original purposes and now obstruct the growth of tokenized financial markets. The move signals growing industry coordination around regulatory modernization that could benefit XRP-based tokenization infrastructure. The XRPL has been positioned as a settlement layer for tokenized assets, making regulatory clarity in this area directly relevant to its institutional use case.
The Blockchain Association submitted formal support for the SEC's proposal to eliminate or overhaul National Market System rules that have been in place since 2005. The association stated that those rules have 'failed to achieve their stated purposes,' adding that their continued existence creates friction for the emerging tokenized securities market.
The push to modernize equity market structure rules is directly relevant to blockchain-based settlement networks. Tokenization of real-world assets, including equities and fixed-income instruments, has been one of the core institutional use cases advanced by the XRP Ledger and Ripple's broader product suite.
If the SEC proceeds with scrapping or revising the NMS framework, it could open pathways for tokenized asset trading and settlement on permissioned or public ledgers. The XRPL's native decentralized exchange and upcoming features targeting institutional asset issuance would stand to benefit from a more accommodating regulatory baseline.
This development sits within a broader regulatory shift in which U.S. financial regulators are under increasing pressure from industry participants to align legacy market structure rules with the realities of digital asset infrastructure. The Blockchain Association's intervention adds institutional weight to that argument.
Key facts
- •Blockchain Association formally backed SEC proposal to scrap 2005 NMS rules
- •Association stated NMS rules have 'failed to achieve their stated purposes'
- •Rationale centers on benefits for tokenized asset markets
- •XRPL has been positioned as infrastructure for tokenized real-world assets
- •SEC is actively considering the NMS rule changes