The U.S. Securities and Exchange Commission has proposed rescinding key market-structure rules that have shaped equity trading for two decades, while at the same time 24X National Exchange filed to trade tokenized Russell 1000 stocks under the Depository Trust Company’s tokenization pilot. The dual developments, though distinct, point to a regulatory environment increasingly open to the kind of market-structure simplification that could accelerate tokenized securities.
SEC targets trade-through rule
The SEC proposal seeks to rescind Rule 611 (the trade-through rule) and Rule 610(e), which together form a legacy framework requiring orders to be routed to protected quotes across fragmented venues. Critics have long argued the rules add complexity and rigid routing obligations, while the SEC now says removing them could “reduce legacy equity-market routing complexity.” Though the proposal does not mention crypto, its focus on execution competition and technology-driven venues lands in a policy zone that tokenized equity platforms have been watching. A simpler regulatory landscape could lower friction for blockchain-based alternative trading systems.
24X seeks tokenized Russell 1000 stocks
Separately, 24X National Exchange – the first national securities exchange approved by the SEC to offer 23-hour weekday trading – submitted a proposed rule change that would allow members to trade and settle Russell 1000 stocks and major-index ETFs in tokenized form. The filing is part of DTCC’s tokenization pilot, which has already drawn similar moves from Nasdaq and NYSE. “Expanding access for traders around the world is core to 24X’s mission,” said CEO Dmitri Galinov. “Facilitating the trading of U.S. equities in tokenized form on 24X will advance these efforts.”
Tokenization infrastructure gains momentum
The DTCC, which safeguards over $114 trillion in securities, plans to begin production activity for tokenized securities services in 2026. Rather than building a separate crypto-native ecosystem, the DTCC framework integrates tokenized representations of securities into existing clearing and settlement systems – an approach that could lower adoption barriers for regulated institutions. The combined SEC rule proposal and exchange filings underscore how tokenization is shifting from a crypto niche to a mainstream market-infrastructure initiative.
