The SEC just removed the single biggest legal obstacle standing between Crypto DeFi and US equity markets. On June 11, the agency formally proposed to rescind Rule 611 of Regulation NMS, the trade-through prohibition that has governed stock order routing since 2005, along with Rule 610(e), which bans locked and crossed quotations.

For tokenized stocks, the structural implications are immediate and profound.

Galaxy Digital’s head of research Alex Thorn called the proposal “one of the biggest unlocks yet for tokenized stocks”, the removal of what he described as “one of the biggest structural barriers to tokenized US equities trading in DeFi.”

The proposal is now open for a 60-day public comment period before the SEC…