Revolution in Stock Tokenization; US Securities Commission Removes Legal Barriers for DeFi

The U.S. Securities and Exchange Commission (SEC) has taken a historic step by proposing the repeal of Rule 611 of Regulation NMS, which was known as the biggest legal obstacle to bringing American company stocks into cryptocurrency markets and DeFi.
This regulation, which has been in effect since 2005, has so far prevented the legal operation of liquidity pools and automated market makers (AMMs) in tokenized stock trading. This change is part of the broader “Project Crypto” initiative, which was launched in August 2025 with the aim of modernizing regulatory frameworks for digital assets and blockchain technology.
By eliminating this rule, restrictions related to order routing and the prohibition of off-exchange pricing outside traditional exchanges will be removed, paving the way for platforms like Robinhood to offer tokenized stocks.
Rule 611, also known as the “Order Protection Rule,” required platforms to execute trades at the best available price across all registered exchanges.
Alex Thorn, Head of Research at Galaxy Digital, stated in his report:
Tokenized stocks fall under the category of Real World Assets (RWA), which have recently received special attention from large financial institutions.
The Securities and Exchange Commission (SEC) announced on its official X account:
Analysts predict that the final vote to repeal these rules will be issued by the first quarter of 2027. This move will not only boost liquidity on the blockchain, but will also intensify competition between the United States and other jurisdictions such as Japan in the field of digital assets.