AMM finally no longer needs to force its way into the traditional order book compliance framework, opening a new on-chain stock trading avenue.

CryptoWorld News reports that Wu has learned that Alex Thorn, Research Director at Galaxy Research, said the U.S. SEC has proposed repealing rules such as Rule 611 of Reg NMS (the Order Protection Rule) and Rule 610(e) (Lock-up/Cross-market Restrictions), which he called one of the most significant regulatory developments in the tokenized stock space in recent years. He believes that Rule 611’s long-standing requirement for trades to follow the National Best Bid and Offer (NBBO) makes it difficult for on-chain trading mechanisms such as AMMs to meet compliance requirements. If the relevant rules are ultimately implemented, the U.S. stock market regulatory framework will shift more toward a “best execution” obligation borne by broker-dealers, providing greater compliance room for tokenized U.S. stocks and on-chain trading models. The proposal is currently in a 60-day public comment period.