Groups Back SEC Rule Repeal, Push Blockchain Guidelines

The Hyperliquid Policy Center and Douro Labs have submitted a joint comment letter to the U.S. Securities and Exchange Commission, urging the agency to fully repeal a key equity trading rule and develop new guidance tailored to blockchain-based markets. The filing, made on August 17, supports the SEC's own proposal to rescind Regulation NMS Rule 611, commonly known as the trade-through rule.

Rule 611, adopted in 2005, requires trading centers to prevent orders from being executed at prices worse than protected quotations displayed elsewhere, a system built around the National Best Bid and Offer. The SEC proposed repealing this rule and related provisions on June 11, arguing it could simplify market structure and reduce costs. The public comment period for that proposal closed on August 17.

In their 22-page letter, the Hyperliquid Policy Center, an advocacy group focused on onchain markets, and Douro Labs, a core contributor to the Pyth Network, argued the rule is incompatible with decentralized trading. They stated that the consolidated quote system does not map cleanly onto automated market makers, onchain order books, or markets operating continuously outside traditional...