SEC Plan to Drop Rule 611 Could Ease Path for Tokenized Stocks, Galaxy Says

Galaxy’s Alex Thorn says a U.S. Securities and Exchange Commission plan to scrap Rule 611 could be a positive development for tokenized U.S. stocks. According to Thorn, removing the rule would take away a major barrier to trading tokenized equities on decentralized platforms.

The development matters because tokenized stocks sit at the intersection of traditional securities markets and crypto infrastructure. If a rule governing stock orders and quotes is removed, Galaxy argues it could make it easier for tokenized versions of U.S. equities to operate in decentralized market venues.

Rule 611 is tied to how stock orders and quotes are handled in U.S. markets. Thorn’s view is that the rule has been a significant hurdle for decentralized trading of tokenized shares, where market structure differs from conventional stock exchanges.

The comments come as tokenized real-world assets remain a focus across the crypto industry. Stocks are among the most closely watched potential use cases because they connect blockchain-based trading systems with established public markets.

The SEC plan has not, by itself, created a new framework for tokenized equities. But Galaxy’s assessment suggests that removing Rule 611 could clear one important regulatory and market-structure obstacle for companies and platforms working on tokenized U.S. stock products.