Galaxy's Thorn: SEC Rule 611 Repeal Could Boost Tokenized Stocks
Galaxy Digital's Alex Thorn argues removing Rule 611 would eliminate a key barrier for tokenized equities on decentralized exchanges.
Alex Thorn, head of research at Galaxy Digital, stated that the SEC's plan to abolish Rule 611 could serve as a major catalyst for tokenized US stocks trading on decentralized platforms.
Rule 611's Impact
The rule, part of Regulation NMS, requires trades to be executed at the best available price across all exchanges. Thorn argued that this creates a compliance burden that hinders tokenized equities from being listed on decentralized exchanges.
The SEC is reportedly considering repealing Rule 611 as part of broader market structure reforms. If removed, tokenized stock issuers could more easily trade on-chain without violating order protection rules.
Tokenized stocks represent traditional equities minted on a blockchain. While several projects exist, low liquidity and regulatory uncertainty have limited adoption. A rule change could open the door for greater integration between traditional finance and decentralized markets.