The US SEC's proposal to repeal Rule 611 of Reg NMS could clear obstacles for tokenized stocks.

On June 12, CoinFeed reported that Alex Thorn, Head of Research at Galaxy Digital, published an article on the X platform stating that the U.S. Securities and Exchange Commission (SEC) has proposed repealing Rule 611 (Order Protection Rule) and Rule 610(e) (Lockdown/Cross-Market Restriction) of Reg NMS. Rule 611, which requires each exchange to prevent the execution of trades at prices inferior to the protected offers displayed on other exchanges, is a core rule of the U.S. stock market structure since 2005. Thorn stated that Rule 611 is one of the biggest obstacles to trading tokenized stocks in DeFi. Automated market makers cannot comply with this rule, and any liquidity pool for tokenized stocks will continuously violate the regulations, essentially constituting an illegal trading center.