SEC Proposal to Rescind Rule 611 Opens Door for Tokenized US Stocks

The Securities and Exchange Commission proposed rescinding two national market system rules that govern order protections and price quotes, a move that could remove a major legal barrier for tokenized US stocks. The agency would scrap Rule 611, which bans trade-throughs, and Rule 610(e), which bars exchanges from displaying a bid at the same or higher price than what is available elsewhere.

Alex Thorn, head of research at Galaxy, called the proposal "one of the biggest unlocks yet for tokenized stocks," saying it would remove "one of the biggest structural barriers to tokenized US equities trading in DeFi." He noted that automated market makers (AMMs) execute against the pool price and therefore cannot comply with trade-through requirements.

United States

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