SEC plan to scrap ‘Rule 611’ a boon for tokenized US stocks: Galaxy

Galaxy’s Alex Thorn says a plan to scrap rules on stock orders and quotes would remove a major barrier to tokenized stocks trading on decentralized platforms.

The US Securities and Exchange Commission proposal to rescind rules around order protections and price quotes could remove a major legal barrier for tokenized US stocks.

The SEC on Thursday proposed to scrap two rules in its national market system regulations. Rule 611 that bans “trade-throughs,” where a stock order on one exchange can’t be for a worse price than on another, and Rule 610(e) banning exchanges from displaying a bid at the same or higher price than what is available elsewhere.

Galaxy head of research Alex Thorn said the proposal is “one of the biggest unlocks yet for tokenized stocks” as it would remove “one of the biggest structural barriers to tokenized US equities trading in DeFi.”