SEC Proposes to Rescind Rule 611 and Rule 610(e) from Regulation NMS on June 12

According to BlockBeats on June 12, the U.S. SEC proposed rescinding Rule 611 and Rule 610(e) from Regulation NMS to simplify market structure and lower trading costs. SEC Chair Paul Atkins stated the proposal aims to drive market evolution through competition and market mechanisms. Rule 611 has required trades to execute at the best available price across venues; Rule 610(e) prohibits locked or crossed quotes.

Analysts note the change could structurally impact tokenized U.S. equities and DeFi trading. Galaxy Digital research head Alex Thorn highlighted that Rule 611 has long constrained on-chain stock trading because automated market makers (AMMs) struggle to meet cross-market best-price requirements. If eliminated, markets may shift toward best-execution frameworks, creating more regulatory space for on-chain trading and tokenized stocks. TD Cowen expects the rule will likely take effect in Q1 2027, though the SEC may enable early tokenization pilots through exemptions.