SEC Plans to Scrap Rule 611 for Tokenized US Stocks

The U.S. Securities and Exchange Commission has proposed scrapping Rule 611, a regulation governing stock orders and quotes, according to Galaxy's Alex Thorn. The plan would remove a major barrier preventing tokenized U.S. stocks from trading on decentralized platforms. Tokenized securities have faced regulatory uncertainty as traditional market structure rules were not designed for blockchain-based trading systems.

Rule 611 Removal Impact on Tokenized Stock Trading

Alex Thorn from Galaxy stated that eliminating Rule 611 would address a significant obstacle for tokenized stocks operating on decentralized platforms. The rule currently governs how stock orders and quotes are processed in traditional markets. Its removal would allow tokenized versions of U.S. equities to function more effectively within decentralized trading infrastructure.

FAQ

What is the SEC's plan regarding Rule 611?

The SEC has proposed scrapping Rule 611, which governs stock orders and quotes in traditional markets.

How would removing Rule 611 affect tokenized stocks?

According to Galaxy's Alex Thorn, removing Rule 611 would eliminate a major barrier preventing tokenized U.S. stocks from trading on decentralized platforms.