{"id":31691,"date":"2026-06-12T05:19:35","date_gmt":"2026-06-12T05:19:35","guid":{"rendered":"https:\/\/bitunikey.com\/news\/sec-rule-rollback-could-unlock-tokenized-u-s-stock-trading-in-defi\/"},"modified":"2026-06-12T05:19:41","modified_gmt":"2026-06-12T05:19:41","slug":"sec-rule-rollback-could-unlock-tokenized-u-s-stock-trading-in-defi","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/sec-rule-rollback-could-unlock-tokenized-u-s-stock-trading-in-defi\/","title":{"rendered":"SEC rule rollback could unlock tokenized U.S. stock trading in DeFi"},"content":{"rendered":"<p><\/p>\n<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">The U.S. Securities and Exchange Commission proposed removing two key Regulation NMS rules, opening a new debate over tokenized U.S. stocks and DeFi trading.<\/p>\n<div id=\"cn-block-summary-block_d3258a3b271dac735c8f27920f9aa577\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>SEC proposed removing Rules 611 and 610(e), changing long-standing trade protections for U.S. equities markets.<\/li>\n<li>Analysts say the move could help DeFi market makers support tokenized U.S. stock trading.<\/li>\n<li>Tokenized equities still face registration, settlement, clearing, and investor-rights questions under U.S. securities rules.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>The SEC <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/newsroom\/press-releases\/2026-54-sec-proposes-rescission-regulation-nms-rules-611-610e\" target=\"_blank\" rel=\"nofollow\">said<\/a> on June 11 that it proposed rescinding Rules 611 and 610(e) of Regulation National Market System. The rules have shaped U.S. equity trading since 2005.<\/p>\n<p>Rule 611 blocks trade-throughs in national market system stocks. In simple terms, a trading venue cannot execute a stock trade at a worse price when a better protected quote is available on another venue.<\/p>\n<p>Rule 610(e) deals with locked and crossed quotations. These rules require trading centers to avoid quotes that equal or cross the national best bid and offer in U.S. stocks.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-x wp-block-embed-x\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">TODAY \ud83d\udea8: The Commission proposed the rescission of Regulation NMS Rules 611 and 610(e).<\/p>\n<p>This proposal would reduce costs for market participants and allow competition, innovation, and other market forces to shape the continued evolution of U.S. equity markets. <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/oIxAAdcSmE\">pic.twitter.com\/oIxAAdcSmE<\/a><\/p>\n<p>\u2014 U.S. Securities and Exchange Commission (@SECGov) <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/x.com\/SECGov\/status\/2065093130404163701?ref_src=twsrc%5Etfw\">June 11, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>The SEC said the proposal would also remove related definitions from Rule 600 and make other matching changes. The public comment period will stay open for 60 days after the proposal appears in the Federal Register.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\"><strong>SEC Chairman Atkins says rule change could cut costs<\/strong><\/h2>\n<p>SEC Chairman Paul Atkins said the plan aims to simplify equity market structure after two decades of Rule 611. He said the rule may have created problems that limited market growth.<\/p>\n<p>\u201cAfter two decades of Rule 611, it is high time that the Commission review its unintended consequences that have hindered \u2014 rather than enhanced \u2014 the long-term growth of our markets,\u201d said SEC Chairman Paul S. Atkins.<\/p>\n<p>\u201cThis proposal is intended to simplify market structure and reduce costs for market participants while allowing competition, innovation, and other market forces to shape the continuing evolution of our equity markets,\u201d Atkins added.<\/p>\n<p>The proposal does not approve tokenized stock trading by itself. It starts a rulemaking process and gives market participants a chance to comment before the agency decides whether to finalize the rescission.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Analysts point to tokenized stocks<\/strong><\/h2>\n<p>Galaxy Digital\u2019s Alex Thorn <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/intangiblecoins\/status\/2065208915285950588?s=20\" target=\"_blank\" rel=\"nofollow\">said<\/a> the proposal could remove a major barrier for tokenized U.S. equities in DeFi. He argued that automated market makers cannot easily follow Rule 611 because they execute trades through liquidity pools and bonding curves.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cAn AMM cannot comply with 611 by construction. It executes against a bonding curve at whatever the pool price is, with slippage, at block-time granularity,\u201d Thorn wrote.<\/p>\n<\/blockquote>\n<figure class=\"wp-block-embed is-type-rich is-provider-x wp-block-embed-x\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">this is one of the biggest structural barriers to tokenized US equities trading in DeFi today. an AMM cannot comply with 611 by construction. it executes against a bonding curve at whatever the pool price is, with slippage, at block-time granularity<\/p>\n<p>\u2014 Alex Thorn (@intangiblecoins) <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/x.com\/intangiblecoins\/status\/2065209327099523177?ref_src=twsrc%5Etfw\">June 11, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>The issue is that DeFi pools cannot check every stock exchange quote in real time before each swap. They also cannot route orders across markets in the same way as traditional trading systems.<\/p>\n<p>Thorn also said Rule 610(e) creates similar issues. AMM prices move with trading flow, which means tokenized equity pools could often lock or cross displayed quotes in the traditional market.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Tokenized equities still face other rules<\/strong><\/h2>\n<p>If the SEC removes the rules, analysts say broker-level best execution duties may play a larger role. FINRA Rule 5310 requires brokers to seek the best available terms for customer orders.<\/p>\n<p>That framework may fit tokenized markets better than trade-by-trade price protection rules. Still, tokenized stocks face other hurdles, including exchange registration, ATS rules, clearing, settlement, and investor rights.<\/p>\n<p>As previously reported, the SEC has been studying an innovation exemption that could allow tokenized public stocks to trade on blockchain platforms. The plan may require tokenized shares to carry the same rights as normal shares, including dividends and voting rights.<\/p>\n<p>Moreover, as reported by crypto.news, Commissioner Hester Peirce has also said any exemption may stay limited in scope. She said it would likely apply to digital versions of existing public equities, not synthetic stock tokens without shareholder rights.<\/p>\n<p>The SEC proposal adds a new step to that wider policy shift. It could reduce one market structure barrier, but the final rules will depend on the comment process and further agency action.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Securities and Exchange Commission proposed removing two key Regulation NMS rules, opening a new debate over tokenized U.S. stocks and DeFi trading. Summary SEC proposed removing Rules 611&hellip;<\/p>\n","protected":false},"author":1,"featured_media":31692,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-31691","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/31691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=31691"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/31691\/revisions"}],"predecessor-version":[{"id":31693,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/31691\/revisions\/31693"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/31692"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=31691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=31691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=31691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}