Woofun AI reports that the U.S. Securities and Exchange Commission proposed on June 12 to repeal two key provisions of the National Market System Regulation. The agency aims to remove Rule 611, known as the Order Protection Rule, and Rule 610(e), the Locked/Crossed Market Rule, to facilitate the on-chain tokenization of equities.

Rule 611 mandates that trading centers prevent executions at prices inferior to those displayed elsewhere, a requirement that has structurally hindered tokenized US stock trading in decentralized finance. Automated market makers cannot comply with the National Best Bid and Offer standard, leading to inevitable 'trade-through' violations.

Concurrently, Rule 610(e) obligates platforms and the National Securities Association to prohibit improper locked or crossed quotations to preserve market order. Eliminating these constraints is intended to align regulatory frameworks with emerging blockchain-based trading mechanisms.