BlockBeats News, June 12, the U.S. SEC proposed to withdraw two core rules—Rule 611 and Rule 610(e)—from Regulation NMS to simplify market structure and promote the long-term development of the U.S. capital markets.

SEC Chairman Paul Atkins stated that the proposal aims to reduce trading costs and drive market structure evolution through competition and market mechanisms. The related rules were established in 2005, with Rule 611 requiring trades to execute under "protected best bid" and prohibiting trades at prices inferior to quotes at other trading venues; Rule 610(e) prohibits "locked or crossed markets."

Analysts pointed out that this adjustment may have a structural impact on tokenized U.S. stocks and DeFi trading. Galaxy Digital's Head of Research, Alex Thorn, mentioned that Rule 611 has long been a fundamental constraint for on-chain stock trading, as automated market maker (AMM) mechanisms inherently struggle to meet the requirements of cross-market best bid and trade routing. If the rule is repealed, market execution may shift more towards a "best execution obligation" framework, providing greater institutional space for on-chain trading, automated market making, and tokenized stocks.

TD Cowen's analysis suggests that the proposal is likely to be formally implemented in the first quarter of 2027, but the SEC may use exemption mechanisms to promote early tokenization pilots before the final rule is enacted.