SEC Proposes Rule Changes to Facilitate Tokenized US Stocks
- The SEC proposed to rescind Rules 611 and 610(e), which restrict trade-throughs and price displays across exchanges.
- Alex Thorn from Galaxy stated this proposal could significantly enhance trading of tokenized stocks in DeFi.
- Automated market makers (AMMs) currently violate trade-through rules, making compliance difficult for tokenized stock pools.
- The SEC plans to implement a “best execution” framework, potentially allowing AMMs under new regulations.
- Feedback on the proposal will be accepted for a period of 60 days before any revisions are made.
The SEC’s initiative aims to modernize regulations that hinder the integration of digital assets in US markets, aligning with its ongoing “Project Crypto” launched in August.
With these changes, the SEC could remove significant barriers for trading tokenized stocks, as noted by Thorn regarding the implications for AMMs violating current rules. (Source)
