Hyperliquid Policy Center and Douro Labs, a core contributor to Pyth Network, jointly submitted a comment letter to the Securities and Exchange Commission calling for the repeal of Rule 611 under Regulation NMS, the federal trade-through rule adopted in 2005.
The rule requires brokers to route orders to the venue displaying the National Best Bid and Offer, a framework built for centralized stock exchanges. HPC argued that the NBBO model does not apply to automated market makers, onchain order books, or around-the-clock crypto trading venues, making the rule obsolete for digital asset markets.
HPC proposed that if Rule 611 is repealed, the SEC should establish how brokers satisfy best-execution obligations when routing orders to onchain markets. Where NBBO does not exist, HPC said the regulator should permit transparent and manipulation-resistant independent reference prices, including onchain price feeds such as Pyth. The letter does not argue for full exemption from best-execution requirements.
HPC separately stated that tokenized U.S. equities should remain subject to Regulation NMS and existing best-execution standards. The distinction separates crypto-native venues and instruments from the trade-through framework, while traditional securities that happen to be issued on blockchain would retain their regulatory status.
Douro Labs has contributed core infrastructure to Pyth Network, a cross-chain oracle that publishes asset prices on and off blockchain. The involvement of a Pyth contributor in the submission places weight behind HPC's proposal to use independent price feeds as substitutes for centralized NBBO in onchain execution venues.
Rule 611 has been the foundation of U.S. equities market structure for two decades. Its repeal in crypto markets would allow venues to compete on speed and pricing without the mandate to route to the best published quote, a shift that would reshape how brokers execute trades in digital assets.
If adopted, HPC's proposal would create a two-track system: traditional equities continue under Reg NMS, while onchain trading operates under a best-execution standard that accepts decentralized reference prices. The number of venues and price sources that could serve as valid execution targets under such a framework remains undefined.
