Robinhood Joins Forces with SEC to Ditch Outdated Stock Trading Rule

Retail trading giant Robinhood is backing an effort to eliminate SEC Rule 611, which has quietly shaped every stock trade made by retail traders since its adoption in 2005.

The rule prohibits 'trade-throughs' in equity markets and requires brokers to route orders to whichever exchange is displaying the best price at that moment. However, this requirement creates layers of compliance infrastructure that increase operational costs, which are ultimately passed along to investors.

Robinhood's Vice President of Brokerage, Matt Billings, argued before Congress in May 2026 that removing Rule 611 would not compromise investor protections, as FINRA's best-execution rule already handles this. The SEC formally proposed rescinding the rule on June 11, 2026.

Proponents argue that eliminating Rule 611 could clear a significant regulatory obstacle for firms looking to offer tokenized equity products on blockchain-based trading venues. This would enable stocks to settle on-chain with faster finality and trading beyond traditional hours.