According to TechFlow TechFlow, on June 12, the U.S. Securities and Exchange Commission (SEC) proposed to repeal Reg NMS Section 611 (Order Protection Rule) and Section 610(e) (Lockdown/Cross-Market Restrictions) and entered a 60-day comment period. Alex Thorn stated that this move could remove a core market structure barrier to tokenized U.S. stocks trading in DeFi.
According to its explanation, Article 611 requires exchanges not to execute trades at prices inferior to those of other exchanges' protected quotes. Automated Market Makers (AMMs), due to their pricing based on liquidity pools, slippage, and block time execution, find it difficult to meet this requirement. It believes that if a broker-level "best execution" obligation replaces the per-trade constraint, the compatibility of on-chain liquidity pools with tokenized stock trading will expand.
