sec

Wall Street and DeFi are about to collide, and almost nobody realizes how massive this is.
The SEC just proposed to SCRAP Rule 611 (The Trade-Through Rule). Sounds like boring regulatory jargon, right? Wrong. This is the ultimate green light for Tokenized US Stocks and Real World Assets (RWA) to absolutely explode.
Here is why this changes everything:
🛑 The Old Problem: DeFi vs. Wall Street
Under the old 2005 Rule 611, brokers had to route stock trades to whatever legacy exchange offered the "best price" (NBBO).
The issue? Automated Market Makers (AMMs) in DeFi don’t work that way. They trade instantly via on-chain liquidity pools.
Because AMMs couldn't comply with this rigid rule, trading tokenized Apple or Tesla stocks on a DEX was essentially a regulatory nightmare.
🔓 The SEC’s "Project Crypto" Move
Led by Chairman Paul Atkins, the SEC is throwing out this 20-year-old relic. It’s part of their "Project Crypto" initiative to merge traditional finance with blockchain.
If (and when) this gets finalized after the 60-day comment period, the floodgates open:
24/7 Global Stock Trading: Forget waiting for Wall Street opening bells. Trade Nvidia or Microsoft 24/7/365 with instant on-chain settlement.
Institutional Floodgates: Giants like Robinhood, Kraken, Citi, and DTCC are already building the tech. This removes the final legal roadblock for them to launch tokenized equities.
The RWA Mega-Cycle: We aren't just talking about tokenizing t-bills anymore. We are talking about bringing the entire multi-trillion dollar US stock market onto the blockchain.
🔮 The Bottom Line
As Galaxy’s Alex Thorn pointed out, this eliminates the single biggest structural barrier between DeFi and traditional equity markets. By early 2027, the line between your crypto wallet and your stock portfolio might completely disappear.
The RWA narrative just got a massive fundamental upgrade. Are you positioned for it? 🧵👇
#Crypto #DeFi #RWA #Tokenization #SEC #bitcoin #Ethereum #WallStreet

The U.S. Securities and Exchange Commission (SEC) has taken a step that could significantly reshape the future of tokenized equities. The regulator has proposed eliminating two key provisions of the National Market System (NMS), rules that have been a cornerstone of U.S. market structure for nearly two decades.
According to industry analysts, the move could remove one of the largest barriers preventing tokenized U.S. stocks from thriving on blockchain networks and accelerate the adoption of decentralized finance (DeFi).
SEC Targets Rules Introduced in 2005
SEC Chairman Paul Atkins announced a proposal to repeal Rules 611 and 610(e) of Regulation NMS, which were originally introduced in 2005 to protect investors and promote fair trading across U.S. markets.
According to Atkins, the goal is to simplify market structure, reduce costs for market participants, and create more room for competition and innovation.
Rule 611 currently prohibits so-called "trade-throughs," meaning a trade cannot be executed at an inferior price if a better bid or offer is available on another exchange at that moment.
Rule 610(e), meanwhile, prevents the display of locked or crossed quotations, situations where bids and offers overlap across trading venues.
The SEC has now opened a 60-day public comment period, allowing market participants to provide feedback on the proposal.
Why Are These Rules a Problem for DeFi?
According to Alex Thorn, Head of Research at Galaxy Digital, the proposal represents one of the most significant regulatory unlocks for tokenized equities to date.
The reason is straightforward: the current rules were designed for centralized exchanges, not decentralized blockchain protocols.
Automated Market Makers (AMMs), which form the foundation of many DeFi applications, operate very differently from traditional stock exchanges. Prices are determined algorithmically through liquidity pools, and transactions are executed directly on-chain.
As a result, AMMs face major challenges complying with Rule 611.
According to Thorn, decentralized protocols cannot route orders across exchanges, continuously monitor the National Best Bid and Offer (NBBO), or halt a trade simply because a better price exists elsewhere.
This means many tokenized stock platforms could potentially be viewed as non-compliant—or even illegal—under the current framework.
Tokenized Stocks Could Gain Significant Momentum
If the SEC ultimately removes these rules, regulatory oversight would shift more heavily toward best execution obligations, requiring brokers to seek the most favorable outcomes for their clients.
Analysts believe this approach is far more flexible and better suited to decentralized trading environments.
Thorn described the proposal as part of a broader initiative often referred to as Project Crypto, aimed at removing major market-structure barriers while addressing registration and licensing challenges through future regulatory exemptions and innovation-focused frameworks.
Approval Could Come in 2027
Jaret Seiberg of TD Cowen’s Washington Research Group believes the proposal has a strong chance of becoming reality.
According to Seiberg, eliminating these rules has long been a priority for SEC Chairman Paul Atkins, and the final version could be completed during the first quarter of 2027.
However, he does not expect the SEC to wait until the rules are formally repealed before allowing tokenization projects to move forward.
Instead, he believes the regulator could grant exemptions to pilot programs much sooner.
Challenges Still Remain
Even if Rules 611 and 610(e) are eliminated, tokenized stocks will continue to face several regulatory hurdles.
Issues surrounding registration, clearing, settlement, and operation through exchanges or alternative trading systems (ATS) will still need to be addressed.
Many existing securities regulations were built for centralized financial institutions and are not well suited for decentralized, peer-to-peer trading environments.
Nevertheless, analysts view the SEC’s proposal as a major milestone. If approved, it could significantly accelerate the integration of tokenized U.S. equities into DeFi ecosystems and bring traditional financial markets one step closer to blockchain-based infrastructure.
#SEC , #defi , #Tokenization , #blockchain , #DigitalAssets
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Disclaimer:
The information and opinions presented in this article are for informational and educational purposes only and should not be considered financial or investment advice. Nothing on this page constitutes a recommendation to buy or sell any assets. Cryptocurrency investments are inherently risky and may result in financial loss. Always do your own research before making any investment decisions.

The largest initial public offering in U.S. history is facing growing scrutiny. Senator Elizabeth Warren has urged the U.S. Securities and Exchange Commission (SEC) to postpone SpaceX’s planned $75 billion IPO, arguing that too many questions remain regarding investor protection, corporate governance, and the company’s estimated $1.8 trillion valuation.
Just days before its anticipated market debut, SpaceX now finds itself at the center of a new political and financial controversy.
The Biggest IPO in U.S. History Faces Resistance
SpaceX plans to offer approximately 555 million shares and raise up to $75 billion in fresh capital. If successful, the transaction would become the largest IPO ever conducted on U.S. capital markets.
Investor demand has already been extraordinary. Orders have reportedly exceeded $250 billion, nearly four times the amount the company intends to raise.
According to Warren, however, overwhelming demand should not be viewed as a reason for celebration but rather as a reason for increased caution.
In a letter addressed to SEC Chairman Paul Atkins, she argued that the scale of the offering and the company’s significance warrant far greater regulatory scrutiny than a typical public listing.
Too Much Power Concentrated in Too Few Hands?
One of Warren’s primary concerns involves the concentration of control within the company.
According to the senator, public investors could commit billions of dollars to SpaceX while having very limited influence over its future direction. She specifically criticized the company’s voting structure, which she believes gives Elon Musk and other insiders disproportionate control.
Additional concerns include mandatory arbitration provisions, restrictions on shareholder proposals, and governance rules based on Texas corporate law.
Warren argues that this combination creates an environment where ordinary investors have limited options to protect their interests.
Questions Surround the $1.8 Trillion Valuation
The senator is not only challenging the company’s governance structure but also its valuation.
SpaceX is expected to debut with an estimated valuation of approximately $1.8 trillion, instantly placing it among the world’s most valuable companies.
However, Warren noted that several market analysts have questioned the assumptions used to justify such a valuation.
She believes investors should receive significantly more detailed disclosures regarding the company’s valuation methodology, business risks, and long-term financial outlook.
Warren also expressed concern that once SpaceX is added to major stock indexes, millions of investors could gain exposure through index funds without actively choosing to invest in the company.
Insider Participation Raises Additional Concerns
Another point of criticism involves the allocation of shares to company insiders.
According to available information, up to 5% of the IPO shares could be reserved for employees and other individuals closely connected to the company.
Warren warned that some participants in this insider program may be able to sell their shares with few restrictions, raising questions about whether all investors are being treated equally.
Cryptocurrencies Could Feel the Impact Too
The debate surrounding SpaceX extends beyond traditional stock markets.
Several analysts have suggested that the record-breaking IPO could temporarily draw capital away from cryptocurrency markets. Investors seeking to participate in the SpaceX offering may sell digital assets to free up funds for stock purchases.
Several crypto exchanges, including Binance, Kraken, Bybit, and Coinbase, have already launched SpaceX-related products ahead of the company’s public debut.
These instruments have experienced significant price swings, highlighting the intense level of speculation surrounding one of the most anticipated public offerings in recent years.
The SEC’s Decision Will Be Closely Watched
Elizabeth Warren’s request comes at a critical moment. SpaceX is on the verge of making history with its public listing, and any regulatory intervention could have implications not only for the company itself but also for broader stock and cryptocurrency markets.
Whether the SEC will decide to subject the offering to additional review remains uncertain. What is clear, however, is that one of the most closely watched IPOs in recent memory is attracting increasing attention from regulators, investors, and lawmakers alike.
#SEC , #ElizabethWarren , #ElonMusk , #SpaceX , #crypto
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Disclaimer:
The information and opinions presented in this article are for informational and educational purposes only and should not be considered financial or investment advice. Nothing on this page constitutes a recommendation to buy or sell any assets. Cryptocurrency investments are inherently risky and may result in financial loss. Always do your own research before making any investment decisions.

The U.S. Securities and Exchange Commission (SEC) has secured one of its most significant legal victories in recent years. In a unanimous decision, the U.S. Supreme Court ruled that the regulator can require securities law violators to surrender illegally obtained profits without first proving that a specific investor suffered a financial loss.
The ruling could have far-reaching consequences not only for traditional financial markets but also for cryptocurrency companies, token issuers, and the broader digital asset industry.
A Case That Could Reshape Future Enforcement
The landmark decision emerged from the case Sripetch v. SEC.
Ongkaruck Sripetch was linked to a scheme involving penny stocks—low-priced shares often associated with speculative trading. Lower courts had previously ordered him to return approximately $2 million in profits that the SEC alleged were obtained unlawfully.
Sripetch challenged the order, arguing that the SEC had failed to demonstrate that any specific investors suffered identifiable financial harm.
The Supreme Court firmly rejected that argument.
Justice Neil Gorsuch, writing for all nine justices, stated that disgorgement—the legal process of forcing wrongdoers to surrender illicit gains—does not require proof that individual investors suffered direct losses.
In other words, if someone violates securities laws and profits from that conduct, the SEC may seek recovery of those profits without having to prove exactly who lost money as a result.
End of a Long-Running Legal Dispute
The ruling also resolves a long-standing conflict among federal appeals courts.
While the Ninth and First Circuits had generally sided with the SEC, the Second Circuit previously established a higher standard in the well-known SEC v. Govil case, requiring evidence of investor harm before disgorgement could be imposed.
This split created inconsistent outcomes across the United States, where similar cases could be decided differently depending on jurisdiction.
The Supreme Court's decision now establishes a nationwide precedent.
Billions of Dollars Are at Stake
The ability to recover unlawful profits is one of the SEC’s most powerful enforcement tools.
During fiscal year 2024 alone, the agency collected more than $6.1 billion through disgorgement and related prejudgment interest.
That is why the latest ruling is viewed as particularly significant.
Interestingly, the SEC’s position in the case was also supported by President Donald Trump's administration. Despite ongoing debates over the extent of cryptocurrency regulation and oversight of emerging financial markets, both sides agreed that the SEC should be able to recover illegal profits without additional burdens that Congress never explicitly required.
What Does This Mean for Crypto?
The cryptocurrency industry could be among the sectors most affected by the decision.
In the past, some companies facing SEC enforcement actions argued that the regulator could not prove actual investor harm. That defense carried particular weight in the Second Circuit, which includes New York—the center of the U.S. financial industry.
Following the Supreme Court's ruling, that argument becomes far less effective.
If the SEC determines that a token sale constituted an unregistered securities offering, it will no longer need to identify every affected investor and prove individual losses.
Instead, the agency can focus directly on calculating the issuer’s profits and seeking to recover those funds.
A Tougher Regulatory Environment
For institutional investors and cryptocurrency firms, the decision sends a clear message: the SEC now has an even stronger position when enforcing securities laws.
Analysts point out that if the agency was able to recover $6.1 billion during fiscal year 2024 under the previous legal framework, future recovery figures could be significantly higher.
The ruling is expected to increase legal risks for projects operating in regulatory gray areas while strengthening the SEC’s ability to pursue companies and individuals that it believes profited from unlawful conduct.
A New Era of Enforcement?
The decision represents a major milestone in U.S. financial law.
The SEC now possesses clearly affirmed authority to seek the return of illegal profits without having to prove specific investor losses. For cryptocurrency firms, token issuers, and participants across capital markets, this means that defenses based on the absence of demonstrable investor harm will carry much less weight going forward.
And that could fundamentally change how regulatory battles unfold in the United States over the coming years.
#SEC , #CryptoRegulation , #crypto , #DigitalAssets , #blockchain
Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies.
Disclaimer:
The information and opinions presented in this article are for informational and educational purposes only and should not be considered financial or investment advice. Nothing on this page constitutes a recommendation to buy or sell any assets. Cryptocurrency investments are inherently risky and may result in financial loss. Always do your own research before making any investment decisions.