Washington — The Securities and Exchange Commission on Friday unveiled a plan to rescind two cornerstone rules that have governed how stock trades are routed for nearly two decades. The move could fundamentally alter how tokenized US stocks trade on crypto platforms and DeFi venues, signaling a sweeping redrawing of market structure for digital assets.
The proposal, announced on June 11, 2026, would remove Regulation NMS Rule 611, the Order Protection Rule, and Rule 610(e), which bans certain locked and crossed quotations. If the plan moves forward, market participants say it could lower costs, spark new competition, and accelerate the integration of tokenized equities with crypto trading rails. The commission stressed that the changes would be subject to a 60-day public comment period before any final rule is adopted.
What the SEC Proposed
The core of the plan is straightforward on paper: eliminate two rules that, in practice, tether US equity markets to traditional routing and quotation practices. Rule 611 currently obligates brokers to avoid trade-throughs — that is, executing a trade at a price worse than the best available quote on any registered venue. Rule 610(e) restricts certain locked and crossed quotes that can distort price discovery.
- Rescission of Regulation NMS Rules 611 and 610(e) as part of the broader Project Crypto initiative
- Potentially reconfiguring how tokenized stocks align with NBBO across venues
- A 60-day public comment window running from June 11, 2026, with a final rule to follow later
The SEC framed the move as a way to reduce costs for market participants and to allow competition, innovation, and market forces to shape the evolution of US equity markets. The agency emphasized that any final rule would still rely on investor protections and ongoing oversight, but with a regulatory framework designed for tokenized assets and digital trading rails.
Why Tokenized Stocks Could Benefit
Advocates for tokenized securities argue that scrapping the two rules could unlock a more seamless link between traditional stock trading and DeFi platforms. Tokenized stocks—assets that represent shares on a blockchain-based contract—have grown in popularity as a way to bridge traditional markets and crypto infrastructure. Proponents say the plan scrap rule could reduce bottlenecks, lower execution costs, and speed up cross-market price discovery.
Industry observers point to a broader trend: regulators weighing how to balance innovation with investor protection in the digital asset space. The SEC’s initiative, part of its ongoing Project Crypto agenda launched in 2025, is aimed at providing clearer lanes for tokenized instruments and on-chain trading venues to coexist with conventional exchanges.
Market Reactions and Expert Opinions
The crypto and tokenized equities community greeted the proposal with cautious optimism. Galaxy Digital’s head of research, Alex Thorn, called the move a potential turning point for tokenized US equities trading in DeFi. He described the proposal as one of the strongest signals yet that major structural barriers could be removed.
Analysts note that the plan scrap rule could also reshape liquidity flows. If the rules are rescinded, market makers and alternative trading venues might compete more aggressively for tokenized stock orders, potentially broadening access to price improvement in tokenized markets. Yet they warn that regulatory clarity remains essential to avoid new forms of market fragmentation or mispricing in a rapidly evolving space.
Industry veteran Carla Mendes, who tracks digital asset market structure, said the proposal could accelerate the alignment of tokenized assets with mainstream equity markets, but added that safeguards and clear governance would be crucial as DeFi trading expands. She emphasized that the transition would require careful monitoring of risk, custody, and settlement processes to protect investors in both traditional and digital environments.
Timeline and Next Steps
The SEC’s plan is now open for a 60-day comment period. The agency encouraged market participants, investors, and technology developers to submit feedback on how the rule changes would affect market integrity, investor protection, and the practical operation of tokenized stocks within DeFi ecosystems. The public comment window is expected to close in August 2026, with a final rule likely to follow only after a thorough review of input from a wide range of stakeholders.
Officials said any final rule would be shaped by ongoing oversight of market activity, including how tokenized securities are cleared, settled, and protected against manipulation. The commission stressed that the plan remains a proposal and may undergo significant revisions based on comments and evolving market conditions.
Investor Takeaways
- Regulatory clarity could accelerate the integration of tokenized stocks with DeFi platforms, potentially increasing access to price discovery and liquidity.
- The 60-day comment period invites voices from exchanges, token issuers, custodians, and retail investors to shape the final design.
- Risks remain, including potential new forms of market fragmentation, custody challenges, and the need for robust surveillance and compliance frameworks.
For investors watching tokenized assets, the key takeaway is that a regulatory pathway could emerge for on-chain stock trading that preserves core protections while enabling innovative trading models. The plan scrap rule could unlock new efficiencies, but it will require rigorous governance, transparent reporting, and ongoing oversight to prevent abuse and protect retirement and retail accounts alike.
Context: Project Crypto and Regulatory Clarity
The June 2026 proposal sits within the SEC’s broader Project Crypto, an initiative launched in August 2025 to modernize how digital assets are regulated and integrated into US markets. If the Rule 611 and 610(e) changes are finalized, they would represent the most consequential milestone to date in aligning crypto trading rails with traditional equity market structure.
As regulators, exchanges, and technology providers parse the implications, market participants will be watching for how the SEC balances openness with investor protection. The intersection of DeFi, tokenized securities, and conventional markets is a dynamic space where policy decisions can move quickly, setting the tone for 2026 and beyond.
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