What did the SEC propose regarding Rule 611 and Rule 610(e)?

The SEC has proposed eliminating Rule 611 and Rule 610(e), two regulations that govern how stock orders are executed and how quotes are displayed across US exchanges. The agency believes the rules may no longer be necessary in modern markets and is seeking public feedback before making a final decision.

Why could the SEC proposal be important for tokenized US stocks?

Galaxy Research argues the proposal could remove a major legal obstacle for tokenized stocks trading on blockchain-based platforms. Current rules were designed for traditional exchanges and can be difficult for decentralised trading systems to follow.

What is Rule 611 and why does it matter?

Rule 611 prevents a stock trade from being executed at a worse price than one available on another exchange. The rule is intended to protect investors by ensuring they receive the best available price across the market.

Why do automated market makers (AMMs) struggle with Rule 611?

AMMs execute trades based on prices available in liquidity pools rather than checking prices across multiple exchanges. Because of this structure, they cannot always guarantee compliance with trade-through restrictions under current SEC rules.

What did Galaxy's Alex Thorn say about the proposal?

Alex Thorn described the SEC proposal as "one of the biggest unlocks yet for tokenized stocks." He believes removing these rules could allow tokenized US equities to trade more easily on DeFi platforms that use AMMs.

How does this proposal fit into the SEC's crypto strategy?

The proposal aligns with the SEC's broader effort to modernise financial regulations for digital assets and blockchain technology. It follows the launch of Project Crypto in 2025, which aims to create clearer rules for blockchain-based financial markets.

Image for illustrative purposes only. Not a real photo.

SEC move may unlock tokenised stocks

Written by Jon CuthbertPublished Jun 12, 2026, 6:33 AM

The US Securities and Exchange Commission has proposed eliminating two key market structure rules in a move that could clear a major regulatory hurdle for tokenised US stocks.

The proposal would remove Rule 611, which prohibits stock orders from being executed at worse prices than those available elsewhere, and Rule 610(e), which restricts how exchanges display bids and quotes.

“This is one of the biggest unlocks yet for tokenised stocks,”

Said Galaxy Research head, Alex Thorn.

Thorn said the changes would remove one of the largest structural barriers preventing tokenised US equities from trading through decentralised finance platforms that rely on automated market makers.

According to Thorn, automated market makers cannot comply with current trade-through requirements because they execute transactions based on liquidity pool prices and cannot halt trades when better prices exist on other venues.

The proposal aligns with the SEC’s broader efforts to accommodate blockchain technology through initiatives such as Project Crypto, which was launched in August 2025 to develop rules for digital assets in US markets.

The SEC will accept public comments on the proposal for 60 days before deciding whether to proceed, while separate plans to permit tokenised stock trading remain under review after concerns were raised by traditional stock exchanges.