Hyperliquid Pushes to Repeal SEC Rule 611 for Crypto

The Hyperliquid Policy Center along with Douro Labs is calling for the removal of SEC Rule 611. This regulation, often known as the trade through rule, requires exchanges to execute trades at the best available price across different venues. Supporters of the repeal argue that this rule was written for traditional stock markets and does not fit the structure of decentralized exchanges.

By moving away from these legacy requirements, advocates believe the crypto industry can build more effective rules for best execution. They argue that applying older regulations to onchain markets creates unnecessary friction that prevents users from getting the most efficient trade results.

This push represents a broader effort to modernize how regulators view digital assets. If the industry successfully replaces these rules with standards built for blockchain technology, it could simplify operations for liquidity providers and traders alike. Watching how the SEC responds to these suggestions will be a key signal for the future of decentralized finance regulation.