SEC Urged to Repeal Outdated Rule 611 for Public Blockchains

The Hyperliquid News Policy Center (HPC) and Douro Labs have jointly filed a comment letter with the U.S. Securities and Exchange Commission (SEC) urging them to repeal Rule 611, which was implemented in 2005.

The HPC and Douro Labs argue that this framework does not translate cleanly to public blockchains, where many venues do not produce traditional protected quotations and where the National Best Bid and Offer (NBBO) may be unavailable or inadequate as a benchmark for on-chain execution.

In their comment letter, they supported repealing Rule 611 and proposed using independent on-chain reference prices, including Pyth, where NBBO does not apply.