Hyperliquid Policy Center and Douro Labs support the SEC's repeal of the "cross-trade rule."

The Hyperliquid Policy Center announced that it has submitted a joint comment letter to the U.S. Securities and Exchange Commission (SEC) with Douro Labs, supporting the proposal to repeal Regulation NMS Rule 611 (the "Trade-Through Rule") and calling on regulators to establish a clearer best execution regulatory framework for on-chain markets.

The Hyperliquid Policy Center believes that the current trade-through rule is clearly incompatible with blockchain-native trading models, which are based on traditional securities market structures, and has proposed three recommendations: support the SEC in repealing the trade-through rule, the SEC should establish clear best execution guidance for on-chain trading, and the regulatory framework should adopt a principles-based approach and recognize independent price reference mechanisms.