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Ahmed Barakat
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The SEC has just removed a major barrier between Crypto DeFi and US equity markets. On June 11, the organization legally issued repealing Rule 611 of Regulation NMS, the antitrust statute since 2005, along with Rule 610(e), which prohibits foreclosures and foreclosure violations.
For tokenized stocks, the impact is immediate and profound.
Galaxy Digital head of research Alex Thorn he called the request “one of the largest open source token purchases”withdrawal of what he said “One of the biggest barriers to US investment in DeFi.”
The proposal is now open for 60 days for public comment before the SEC goes into final rulemaking.
The move is part of the SEC’s broader Project Crypto program, which was launched in August 2025 to improve the regulation of digital assets and blockchain technology in US markets. The repeal of Rule 611, if completed, would be the most important part of the picture.
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Rule 611 and the Regulatory Protection Act: Why AMMs Are Systematically Illegal
Rule 611, also known as the Order Protection Rule, was enacted in 2005 as the basis for Regulation NMS. It restricts trading, trading at a price worse than the best protected price available on any other exchange.
In its view, it reinforces the National Best Bid and Offer (NBBO) guidelines for any collective action in all jurisdictions.
The problem of tokenized equities is fixed and irreversible in its current state. DeFi AMM prices sell algorithmically, against each pool price at the time of execution, based on a formula that is always generated instead of going to NBBO.
Thorn made it clear: any AMM pool that offers US stocks “they can trade all the time and will undoubtedly be a place of illegal trade.” Rule 610(e) adds to the problem – AMMs can’t stop trading when better terms are available elsewhere, meaning they’re breaking even on that front.
Instead the SEC wants to be established by principles to do well it is used at the level of brokers rather than trading on an individual basis in different locations.
This change is what makes AMM’s tokenized equities work, investors who connect to DeFi pools may need to present policies designed to satisfy all customers, without needing to verify that NBBO is compliant with each atomic exchange.
Commissioner Hester Peirce, in her supporting remarks, criticized the existing Protection Order “fuel aid” by promoting the proliferation of exchanges and stifling innovation rather than protecting investors.
Crypto Currency RWA Tokenization: The Market Changes in SEC Rules Was Stifling
Tokenized equities are part of a growing global real estate (RWA) movement, where venture capital has been steadily building on the infrastructure of traditional financial instruments.
Platforms including Robinhood and Kraken have been expanding the stock market, and the SEC said it planned a new exemption for certain types of US listed companies, backed by 1:1 and shares under a qualified manager, before it was delayed last month after exchange officials complained about executions.
Repealing Section 611 eliminates the inconsistencies that made the waiver so difficult in the first place.
Policy analysts at TD Cowen’s Washington Research Group expect the SEC’s final vote on the withdrawal in Q1 2027, based on the review-and-reposal process, a timeline that may coincide with other market changes under the current Regulation NMS.
The international regulatory movement is also increasing pressure: The latest repositioning of crypto assets in Japan as economic instruments show that competing powers are not waiting for Washington to act.
The competitive window is real. Wall Street is no longer against the signs, it is building the railroad. Citi, DTCC, and a growing group of large investors are already in a stable position, and the repeal of Rule 611 removes the last major hurdle for US-based tokenized AMM trading to operate on a large scale.
