SEC Proposes Eliminating Rule 611 and Rule 610(e) to Advance Tokenized Stocks

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According to the SEC and Galaxy Digital's Head of Research Alex Thorn, the Securities and Exchange Commission has proposed eliminating Rule 611 and Rule 610(e) from its National Market System framework to remove regulatory obstacles preventing automated market makers and decentralized exchanges from supporting tokenized US stocks. Rule 611 prohibits trade-throughs by requiring orders to execute at the best available price across all exchanges, while Rule 610(e) prevents exchanges from displaying price quotes equal to or worse than those elsewhere in the market. These rules have historically been incompatible with how decentralized exchanges operate. The SEC opened the proposal for a 60-day public comment period.
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