SEC ends trade-through rule, opening tokenized stock trades
The U.S. Securities and Exchange Commission (SEC) has formally proposed eliminating the long-standing “trade-through” rule, a market-structure requirement that has forced investors to receive the “best possible price.”
The article frames this as a major unlock for DeFi and tokenized real-world assets (RWAs). Under the current rule, exchanges that try to trade regulated U.S. stocks would effectively create “trade-throughs” repeatedly, putting operations at legal risk. By rescinding the rule, the SEC is seen as clearing a path for regulated, on-chain equity trading.
Notable reactions include Galaxy Digital and Coinbase, both viewing the change as a significant step forward for tokenized RWAs. Coinbase also disclosed plans to launch tokenized stock trading outside the U.S., using 1:1 backed shares held directly on-chain; the new SEC posture is presented as a possible route toward U.S. domestic expansion.
The piece also includes debate over whether the SEC is “rewriting” rules for a new industry. SEC Chair Paul Atkins is cited arguing the trade-through approach relies on outdated price-matching metrics, while modern markets should prioritize liquidity and order execution.
Overall, the proposed elimination of the trade-through rule could accelerate the move of tokenized equities from offshore pilots to more direct U.S. trading frameworks, strengthening the regulatory footing for DeFi-linked RWAs.
Bullish
Bullish. The proposed elimination of the trade-through rule removes a key legal/operational friction point for venues trying to connect regulated U.S. equities with on-chain execution. That typically increases confidence that tokenized real-world assets (RWAs) can scale beyond pilots.
Short term: traders may see a sentiment boost for RWA-adjacent narratives (tokenized equities, compliant on-chain trading), since major actors like Coinbase publicly position for expansion and large institutions respond positively. News like this has historically driven “regulatory relief rallies” in crypto sectors tied to institutional rails.
Long term: if the SEC’s direction leads to clearer market-structure guidance, more compliant tokenized markets could launch in the U.S., improving liquidity pathways and reducing regulatory uncertainty for builders. That can support sustained interest in DeFi infrastructure that interfaces with TradFi assets.
Risks remain. This is a proposal, not final rulemaking, and implementation details could still delay outcomes. Also, the impact on broad crypto prices (e.g., BTC) may be indirect—mainly through sentiment and sector rotation rather than immediate cash-flow to tokens.