The Hyperliquid Policy Center (HPC) and Douro Labs, a core contributor to Pyth Network, have formally asked the U.S. Securities and Exchange Commission to repeal Rule 611 under Regulation NMS, the long-standing trade-through rule that requires brokers to route orders to the market displaying the best available price.
In a joint comment letter submitted on August 17, 2026, the groups argue that Rule 611 was designed for centralized quotations and the National Best Bid and Offer framework, making it poorly suited for automated market makers, onchain order books, and markets that operate 24/7. The letter emphasizes that onchain venues do not produce a single consolidated quotation, and the concept of a best price shifts constantly across liquidity pools and chains.
The proposal is not a blanket deregulation request. HPC and Douro Labs ask the SEC to clarify best-execution obligations for onchain markets and to permit transparent, manipulation-resistant independent reference prices where NBBO is not applicable, including onchain price feeds such as those provided by Pyth Network. At the same time, they say tokenized U.S. equities should remain subject to existing best-execution requirements under Regulation NMS.
The letter arrives amid rapid growth in tokenization, with the sector recently crossing $20 billion onchain and major institutions settling tokenized Treasuries. That growth has made the regulatory line between traditional securities and native onchain trading systems increasingly difficult to ignore.
Market response has so far been cautious, with no significant price movements or volume activity reported around the filing. Traders and stakeholders are watching for the SEC’s response, as a potential repeal or modernization of Rule 611 could reshape broker routing practices, compliance standards, and institutional participation in decentralized trading venues.
