SEC Proposal to Scrap Rule 611 Could Boost Tokenized U.S. Stocks and DeFi

The U.S. Securities and Exchange Commission (SEC) adopted Regulation NMS in 2005. Its Rule 611 bars trading venues from executing trades at prices inferior to protected quotations available in other markets, preventing so-called trade-throughs. But that cross-market price protection is difficult to apply to automated onchain trading, creating a compliance barrier for tokenized U.S. stocks on DeFi platforms.

On June 11, 2026, the SEC proposed rescinding Rule 611 and Rule 610(e), which restricts locked and crossed quotations. The proposal was published in the Federal Register on June 17, with comments due by August 17. Galaxy head of research Alex Thorn said on June 12 that final approval would remove a major obstacle to bringing tokenized U.S. stocks into DeFi. The proposal concerns market-structure rules and does not involve any transaction amount.