SEC plan to scrap ‘Rule 611’ a boon for tokenized US stocks: Galaxy
Summary
The SEC proposed rescinding two market rules that protect quote priority and prevent trade-throughs: Rule 611 and Rule 610(e). If adopted, the change could remove a major legal obstacle for tokenized US stocks and DeFi trading. Galaxy’s Alex Thorn said it would be one of the biggest unlocks for tokenized equities because current rules make automated market makers hard to use: AMMs execute against pool prices and cannot reliably check other venues for better quotes. Thorn said a replacement “best execution” framework could better fit tokenized stock trading. The proposal is open for 60 days of public comment, and the SEC may revise it before finalizing.
