The crypto market's vulnerability to 'needle sticks'—sudden price drops causing forced liquidations—has sparked discussions on adopting traditional finance mechanisms like the Trade-Through Rule. This rule, which mandates prioritizing the best available price, could potentially bring more fairness to crypto transactions. Currently, the market is highly fragmented, with over 1,300 exchanges lacking a centralized price benchmark, leading to increased risks of unfavorable execution.
The U.S. SEC is set to hold a roundtable on September 18, 2025, to discuss the Trade-Through Rule, which may influence future regulatory frameworks for the crypto industry. This development highlights the ongoing efforts to align crypto market practices with established financial standards to enhance stability and investor protection.
Could the Trade-Through Rule Mitigate Crypto Market Volatility?
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