SEC Proposes Rescinding Rule 611 to Modernize Market Structure

The U.S. Securities and Exchange Commission (SEC) has proposed rescinding Rule 611, a core regulation under the National Market System (NMS), in an effort to modernize market structure.

Rule 611, also known as the Order Protection Rule, was adopted in 2005 and requires trading centers to prevent the execution of trades at prices inferior to the best available quotes. However, SEC Chair Paul Atkins framed the review as part of a broader effort to reshape equity market structure and carry implications for blockchain-based trading venues.

The proposal does not directly alter rules governing spot crypto trading or decentralized exchanges, but its potential removal signals a shift in how regulators think about order routing and best execution. This could have significant implications for developers building tokenized securities platforms or blockchain-based alternative trading systems.