SEC Just Proposed Removing Two Old Rules — And It Could Change Crypto Trading Forever

 

SEC Just Proposed Removing Two Old Rules — And It Could Change Crypto Trading Forever

Okay, this one is actually a big deal. If you've been following crypto news lately, you've probably heard the term "tokenized stocks" floating around more and more. Well, this week the SEC did something that could make that whole world a reality — and faster than most people expected.

Let me break down exactly what happened and why it matters to you.

What Did the SEC Actually Do?

On June 13, 2026, the U.S. Securities and Exchange Commission proposed getting rid of two old market rules — Rule 611 and Rule 610(e). These were part of something called the National Market System framework, which basically sets the rules for how stocks are traded in America.

Now, these rules have been around for a long time. And the SEC itself admitted they no longer reflect how modern markets actually work. Trading technology has changed dramatically. Blockchain exists. Decentralized platforms exist. But the old rulebook was still written for a world that looked very different.

So they're finally doing something about it.

What Are Tokenized Stocks, Anyway?

Good question. A tokenized stock is basically a traditional stock — like Apple or Tesla — represented as a digital token on a blockchain. You get the same exposure to the asset, but the whole thing runs on decentralized technology instead of old-school Wall Street infrastructure.

The idea sounds simple. But the problem has always been regulation. Blockchain-based trading platforms struggled to comply with rules that were never designed for them in the first place.

Why Were These Rules a Problem for Crypto?

Here's where it gets interesting.

The old Rule 611 required trading systems to check every competing venue before executing a trade, to make sure you were getting the best price. That makes total sense for traditional stock exchanges. But for decentralized platforms that use liquidity pools — where prices are set automatically by an algorithm — it created a massive headache.

These systems can't pause every transaction to check what's happening on ten other exchanges. They just don't work that way. So even when a platform was doing everything right for its users, it could technically be violating regulations designed for a completely different type of market.

Galaxy Research's Alex Thorn put it plainly — this was one of the biggest structural obstacles facing tokenized stock platforms in the US. Removing these rules could finally give them room to operate properly.

What Happens Next?

The proposal opens a 60-day public comment period. Anyone — including crypto companies, traditional finance firms, and regular investors — can submit feedback. After that, the SEC will review everything and decide whether to finalize the changes, modify them, or drop them.

That process takes time. But the fact that they're even proposing this is a significant signal. It tells the market that regulators are no longer treating blockchain-based trading as a fringe idea.

Why Should You Care?

If you're into crypto, this matters for a few reasons.

First, it could open the door to a wave of new platforms that let you trade tokenized versions of real stocks using crypto infrastructure. Faster settlement. Lower fees. No banker in the middle.

Second, it's part of a much bigger shift happening right now. Governments and regulators around the world are slowly starting to accept that blockchain isn't going away — and they need frameworks that actually make sense for it.

Third, big financial institutions have already been quietly testing blockchain settlement systems and digital asset infrastructure. Regulatory clarity is literally the last thing holding a lot of them back. If the SEC moves forward with this, you could see major players entering the tokenized asset space very quickly.

The Bottom Line

This isn't a done deal yet. It's a proposal, and it still has to go through the comment period and a final review. But it's a meaningful step toward a more crypto-friendly regulatory environment in the United States.

Keep watching this one. The next few months could be very interesting.

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Disclaimer: This article is for informational purposes only and is not financial advice.