SEC plans to repeal trade-through rule, vote set for next week

The two-decade-old regulation that forces brokers to route orders to the best-priced venue is on the chopping block, with implications for both equity and tokenized securities markets.

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Add us on Google by Editorial Team Jun. 6, 2026

The SEC is preparing to propose a full repeal of Rule 611 of Regulation NMS, better known as the trade-through rule, with a commission vote scheduled for the week of June 9, 2026. If approved, it would undo one of the most consequential pieces of US equity market structure regulation adopted in the last twenty years.

Rule 611 was adopted in 2005 as part of the broader Regulation NMS framework. The rule requires trading venues to route orders to whichever exchange is displaying the best price, preventing trades from executing at inferior prices when a better quote existed elsewhere.

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Why the rule is under fire

The rule was controversial from the moment it was born. Current SEC Chairman Paul Atkins dissented from its original adoption back in 2005, arguing at the time that it creates market distortions and promotes “gamesmanship.” Two decades later, he’s now in a position to do something about it.

The push toward repeal gained significant momentum following an SEC roundtable held on September 18, 2025. During that session, market participants voiced strong support for eliminating the rule entirely, citing high compliance costs, market fragmentation, and diminished competition as core grievances.

The crypto connection

Legal analyses have suggested that reforms to Rule 611 could directly facilitate trading in tokenized securities, aligning the move with the SEC’s broader “Project Crypto” initiative. On-chain trading systems don’t neatly fit into the framework of “protected quotations” displayed across traditional exchanges, and removing that requirement clears a path for tokenized assets to trade alongside their conventional counterparts without running afoul of order-routing mandates. No specific tokens or digital assets were mentioned in the proposal discussions.

What this means for investors

The vote is just the first step. A proposal to repeal would trigger a public comment period before any final rule change takes effect. The direction of travel under Chairman Atkins is unmistakable: the SEC is moving to dismantle a regulation its current leader has opposed for over two decades, with implications for how both traditional and digital securities trade in the US.

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