The SEC has proposed rescinding Rule 611 of Regulation NMS, a key 'trade-through' rule that has governed US equity market structure since 2005. This move is significant for crypto as the rule was a major structural barrier to tokenized stock trading and settlement. Galaxy Digital's Alex Thorn highlighted its restrictive nature, suggesting its removal could pave the way for more efficient, blockchain-based securities. This development signals a potential shift towards greater interoperability between traditional finance and digital assets, impacting how tokenized securities could be traded and settled in the future. Investors should monitor the SEC's final decision and industry responses for implications on digital asset adoption.
The SEC's proposed rescission of Rule 611 removes a significant regulatory hurdle for tokenized stock trading. This could accelerate the convergence of traditional equities and blockchain technology, potentially increasing institutional interest in digital asset platforms for securities issuance and settlement.
This story reveals a growing regulatory acknowledgment of blockchain's potential to reshape traditional finance. The move to dismantle legacy rules suggests a pathway for digital assets to integrate into mainstream markets, implying a bullish long-term outlook for compliant tokenized securities.
The US Securities and Exchange Commission (SEC) has proposed rescinding Rules 611 and 610(e) of Regulation NMS, the trade-through rule that has shaped US equity market structure since 2005. Galaxy Digital’s Head of Firmwide Research, Alex Thorn, called the rule “one of the biggest structural barrier