The SEC Wants to Kill 'Rule 611' — Here's Why That Could Be Huge for Tokenized Stocks
61d ago · 1 source
The SEC is planning to eliminate Rule 611, a regulation that currently governs how stock trades are routed across exchanges. According to Galaxy, scrapping this rule could significantly benefit the emerging market for tokenized US stocks by removing barriers that have limited how and where these digital assets can trade.
WHY IT MATTERS
Imagine you're selling a used car, and the government says you must always check every dealership in the country to make sure you're offering the best price before completing a sale. That's essentially what Rule 611 does for stock trading — it forces trades to go to the exchange with the best price. While that sounds good, it also makes it really hard for new types of marketplaces (like ones built on blockchain) to compete. Tokenized stocks are basically digital versions of regular stocks that live on a blockchain, which could allow for faster, cheaper, and more accessible trading. If this old rule goes away, it could make it much easier for these blockchain-based stock markets to grow, potentially letting everyday people trade stocks around the clock with near-instant settlement — something traditional markets still can't do.
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Educational only — not financial advice.