SEC rule overhaul for tokenized stocks, making AMMs easier for DeFi

Di US SEC don propose make dem comot two National Market System rules wey dey restrict execution and quote display for stocks. The changes fit make e easier for tokenized stocks to join DeFi and reduce regulatory wahala for AMMs. First, SEC wan drop Rule 611, wey dey impose “trade-through” requirement across venues for the best available price. Second, dem go remove Rule 610(e), wey dey limit exchanges from showing quotes that match or make worse prices wey dey elsewhere. Alex Thorn from Galaxy Digital talk say the current framework no dey fit AMMs wey decentralized exchanges dey use. Cos AMMs dey price via liquidity pools not order books, tokenized stocks trades fit dey fail trade-through checks many times as pool prices dey update continuously. The rules fit also clash with quote-display logic. Thorn expect say SEC fit replace the approach with broader “best execution” standard, wey go give decentralized market makers more flexibility while still dey target investor protection. The proposal open for 60-day comment period, final decision go come later. For traders, this SEC shift on tokenized stocks and AMM na potential tailwind for tokenized-equities story, though wetin go happen dey depend on final rule wording and timing.