The impact to Pyth is significant
Grateful to SEC leadership and staff for engaging seriously with the market structure questions raised by Pyth contributor Douro Labs and other market participants.
The Commission's proposal to rescind Rule 611, the trade-through rule, and Rule 610(e) of Regulation NMS is an important step in that conversation.
The proposal also cites Douro Labs' paper, Beyond Reg NMS: A Market Structure Framework for the Modern Era, in its discussion of how crypto markets evolved without prescriptive routing rules and produced mechanisms like intents-based trading, automated market makers, decentralized price oracles, and atomic cross-domain settlement.
The impact to Pyth is significant.
Rule 611 made exchange feeds the legally privileged data source for U.S. equity execution. If a protected quote appeared on another venue, trading centers were constrained from executing at an inferior price, even when routing there made little practical sense. Over two decades, that requirement forced firms to connect to every exchange, raised market data and connectivity costs, and added complexity with each new venue.
The constraint matters most for what comes next. Onchain venues trading tokenized equities cannot perfectly sync to the SIP, monitor every exchange quote, and route to NYSE or Nasdaq whenever a penny-better quote flashes elsewhere. If Rule 611 is removed, these venues may gain room to execute around high-quality reference prices created by Pyth, with brokers demonstrating best execution through reasonable routing decisions.
This proposal is not final. The public comment period runs for 60 days following Federal Register publication, and Rule 603 reform still matters for displaying Pyth prices in actionable contexts.
But the direction is meaningful. Legacy market structure is beginning to make room for programmable market data, onchain settlement, and best execution supported by transparent, reliable prices.
Read the proposal: https://www.sec.gov/files/rules/proposed/2026/34-105655.pdf