Hyperliquid Policy Center Calls for SEC to Repeal

The Hyperliquid Policy Center (HPC) and Douro Labs have jointly submitted a comment letter to the SEC, advocating for the repeal of Regulation NMS’s Rule 611, commonly known as the trade-through rule. This rule, created for centralized trading, is viewed as poorly suited for decentralized trading platforms. If repealed, it may lead to significant changes in how brokers handle best-execution obligations for onchain markets, as highlighted in a tweet by @WuBlockchain.

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The broader crypto market is currently navigating mixed signals, but the push from HPC and Douro Labs to repeal the trade-through rule has sparked notable conversation among traders and stakeholders. The trade-through rule requires brokers to execute orders at the best available price, a concept HPC argues is incompatible with the decentralized nature of today’s trading. Their proposal emphasizes the need for an updated framework that could accommodate new trading technologies and practices, particularly in the realm of onchain trading. The implications of such a change could resonate widely, affecting how brokers operate and how execution is viewed in decentralized finance.

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