Hyperliquid Policy Center Urges SEC to Allow Onchain Prices for Best Execution

U.S. brokers should be able to use independent onchain pricing benchmarks to meet best-execution requirements when traditional stock-market pricing standards do not apply, the Hyperliquid Policy Center said in a joint submission to the Securities and Exchange Commission (SEC) with Douro Labs. 

The proposal would apply if the SEC repeals Rule 611 of Regulation NMS, the trade-through rule. HPC said transparent, manipulation-resistant reference prices could provide an alternative in markets where the National Best Bid and Offer, or NBBO, cannot be used, citing Pyth’s on-chain price feeds as an example.

The groups’ submission focuses on how U.S. market rules could accommodate decentralized trading infrastructure. HPC argued that Rule 611’s reliance on centralized quotations and the NBBO framework does not fit automated market makers, on-chain order books, and continuous 24/7 trading.

Douro Labs is a core contributor to Pyth Network and joined HPC in submitting the comment letter.

HPC did not propose removing existing market protections from tokenized U.S. stocks. It said tokenized equities should continue to fall under Regulation NMS and current best-execution requirements.

Source: Hyperliquid Policy Center