WASHINGTON D.C. — The U.S. Securities and Exchange Commission on Sunday formally opened a 60-day public comment period on its proposal to repeal Rule 611, also known as the Order Protection Rule, and Rule 610(e), a move that could fundamentally reshape how equities and tokenized securities trade across both traditional and decentralised platforms. The proposal, which surfaced in preliminary regulatory filings earlier this week, drew immediate attention from the cryptocurrency and fintech sectors as its implications for tokenized stocks on decentralised exchanges became clear.

The SEC's action, announced via its official rulemaking portal, invites comment from market participants, broker-dealers, exchanges, and technology firms. The commission framed the repeal as part of a broader modernisation effort to align equity market structure rules with technological realities that have evolved significantly since Regulation NMS was adopted in 2005. Chair Paul Atkins, who has signalled a more accommodating posture toward digital asset markets, is expected to oversee the comment process personally.

For the crypto and decentralised finance industry, the potential repeal of Rule 611 removes a key regulatory barrier that has historically prevented tokenized representations of publicly traded stocks from being traded on decentralised exchanges without triggering complex best-execution obligations. Firms including Coinbase, Uniswap Labs, and Robinhood's crypto division are expected to file detailed comment letters supporting the proposal, while traditional exchange operators such as NYSE and Nasdaq are anticipated to push back, arguing the rule change could fragment liquidity and undermine investor protections.

Analysts at Compass Point Research noted that the rulemaking, if finalised, could unlock a new category of tokenized equity products that have been stalled in legal uncertainty for years. 'This is the clearest signal yet that the SEC under the current administration is prepared to let market structure evolve to accommodate on-chain securities trading,' said one Washington-based securities attorney familiar with the proceeding. Several blockchain infrastructure firms, including Backed Finance and Ondo Finance, indicated they are preparing technical comment submissions outlining how tokenized stock protocols could comply with updated disclosure and settlement requirements.

The comment window is scheduled to close in mid-August, with a final rule anticipated before the end of the fourth quarter. Market observers cautioned that significant opposition from institutional players could slow the timeline, but the formal opening of the comment period marks the most concrete regulatory step yet toward legitimising decentralised trading of traditional securities in the United States.