According to @VanessaGrellet_, the SEC is aiming to update legacy regulations, including Reg NMS, to accommodate on-chain trading and Automated Market Makers (AMMs). The proposed changes focus on differentiating between intermediated and disintermediated activities, and promise clearer protections for software publishers. This regulatory shift could facilitate greater institutional and retail participation in DeFi markets, potentially increasing liquidity and legitimacy for key cryptocurrencies and decentralized finance protocols. These developments are likely to impact trading volumes and price volatility in the crypto sector, especially for DeFi tokens and platforms utilizing AMMs (source: @VanessaGrellet_).