The U.S. SEC Proposes to Remove Two Rules from the National Market System to Facilitate Tokenized Stock Trading

KuCoinFlash

Release Time: 06/12/2026 01:12:29

Summary

On June 12, the U.S. Securities and Exchange Commission proposed removing Rule 611 and Rule 610(e) from the National Market System. Rule 611 restricts trades worse than the best quote, limiting altcoins to watch in tokenized stock trading. Rule 610(e) prevents locked or crossed quotes. The changes could boost trading volume by easing DeFi platform compliance with NBBO requirements.

BlockBeats report, on June 12, the U.S. SEC proposed to repeal Rule 611 of the National Market System (Trade-Through Rule) and Rule 610(e) (Locking/Crossing Market Restrictions).

Rule 611 requires trading centers to prevent executions at prices worse than the protected quotes on other trading platforms. This rule is one of the major structural barriers to trading tokenized U.S. stocks on DeFi, as automated market makers (AMMs) cannot comply with NBBO requirements and inevitably constitute "trade-throughs";

Rule 610(e) requires trading platforms and national securities associations to establish rules preventing members from improperly displaying locked or crossed quotations to maintain market order and price protection.

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