HPC and Douro Labs Back SEC Push to Scrap Trade-Through Rule

The Hyperliquid Policy Center (HPC) and Douro Labs, a core contributor to Pyth Network, have formally requested the U.S. Securities and Exchange Commission (SEC) to repeal Rule 611, known as the ‘Trade-Through’ rule. In a joint comment letter, both organizations argue that this 2005 framework is incompatible with the trading and settlement mechanisms of public blockchains.

The rule requires routing orders to the best price displayed across traditional markets (NBBO), a centralized system that goes offline during nights and weekends and fails to reflect the algorithmic mechanics of automated market makers (AMMs). For the financial ecosystem, eliminating this restriction would unlock the adoption of transparent, manipulation-resistant onchain reference prices aligned with the speed of decentralized execution.

This initiative advocates replacing legacy models with native Web3 benchmarks. With the comment window now closed, the final determination rests with the SEC, marking a pivotal step toward the regulatory modernization of tokenized markets.

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