Hyperliquid Policy Center Backs SEC Push to Repeal Trade-Through Rule

HPC and Douro Labs urge SEC to scrap Rule 611, citing incompatibility with on-chain models, and propose clear best execution standards.

Woofun AI reports that the Hyperliquid Policy Center, alongside Douro Labs, submitted a joint letter to the SEC endorsing the repeal of Rule 611 of Regulation NMS, known as the "Trade-Through Rule". The submission argues that this regulation, rooted in traditional securities structures, conflicts with blockchain-native trading models and could impede on-chain financial market growth. The entities recommend establishing clear Best Execution guidelines that account for unique on-chain factors like 24/7 operations, network fees, and MEV, while advocating for a principle-based framework that recognizes independent price reference mechanisms such as those provided by Pyth Network.