Hyperliquid Policy Center backs repeal of U.S. SEC Rule 611, seeks onchain guidance

Hyperliquid Policy Center and Douro Labs, a core contributor to Pyth Network, said they submitted a joint comment letter to the U.S. SEC backing the repeal of Rule 611 and urging the agency to establish guidance for onchain markets. They said Rule 611 is built around a traditional market structure in which exchanges aggregate quotes to determine the best available price, making it unsuitable for onchain markets. The groups added that prices in automated market makers, or AMMs, are determined by liquidity pools at the time of execution, while onchain order books operate outside conventional centralized quote systems. They proposed that the SEC scrap Rule 611 and develop principles-based best execution guidance applicable to onchain markets. They also stressed that tokenized U.S. stocks should remain subject to existing investor protection rules regardless of their settlement model.