SEC Moves to Scrap 20-Year-Old Rule Hindering Blockchain-Based Stock Trading

The Securities and Exchange Commission is taking aim at a cornerstone of Wall Street's trading infrastructure. A June 11 proposal seeks to rescind Rule 611 of Regulation NMS - the trade-through rule that's governed stock execution quality since 2005. The regulation currently requires trading centers to prevent executions at prices worse than protected quotes displayed elsewhere.

While market structure debates focus on routing and execution quality, crypto firms see deeper implications. The rule's NBBO (National Best Bid and Offer) framework has been a significant barrier to reconciling blockchain-based stock trading with traditional markets. Its removal could accelerate institutional adoption of tokenized securities.

The SEC's move signals recognition that legacy systems built for routed markets may not serve decentralized finance. Market participants are now weighing how blockchain-native price discovery could reshape equity trading after two decades of NMS dominance.