Overview
- The SEC proposed rescinding Regulation NMS Rules 611 and 610(e) on June 11, 2026, and opened a 60-day public comment period to start formal rulemaking.
- Rule 611 bars executing a trade at a worse price than a protected quote on another venue and Rule 610(e) restricts locked or crossed quotes; regulators say removing them would simplify market structure and cut costs.
- Analysts say the change clears a key technical barrier for automated market makers, which price trades from liquidity pools and cannot check or route against exchange quotes in real time.
- Even if the rules are repealed, tokenized U.S. equities would still need to satisfy exchange or ATS registration, clearing and settlement processes, and protections that preserve shareholder rights.
- Market watchers expect further SEC steps including an innovation exemption or pilot exemptive relief before any broad on‑chain trading is allowed and some forecast a final decision as early as Q1 2027.