According to The Crypto Times, Douro Labs, a core contributor to Pyth Network, and the Hyperliquid Policy Center have jointly asked the SEC to accept onchain price feeds when evaluating execution quality in blockchain-based markets. Their filing urges the regulator to retire Rule 611, the Trade-Through Rule, and recognize independent blockchain-native reference prices. For oracle infrastructure, this is a direct push to move execution benchmarking away from legacy exchange data and toward feeds designed for continuous, block-based markets.
The benchmark problem is structural
Rule 611 was built around publicly quoted exchange prices. Blockchain venues do not consistently operate on that model.
Automated market makers set prices through pool formulas instead of publishing traditional bids and offers. Onchain order books may display resting orders but are not connected to the US national reporting system. Trading also continues outside the operating schedule of conventional market infrastructure.
That creates a measurement gap. A broker evaluating a blockchain-based stock trade still needs a reference price, but the standard benchmark may be unavailable or poorly aligned with the moment when an order is executed and settled.
Douro Labs and the Hyperliquid Policy Center argue that an onchain feed can provide a more relevant comparator. The proposal is not simply for another price API. It is for a reference layer that can be inspected, tested, and tied to the mechanics of blockchain execution.
Four requirements turn an oracle into an execution benchmark
The filing outlines four conditions for a qualifying reference price:
| Requirement | Infrastructure implication |
|---|---|
| Independent market contributors | The feed should aggregate input from participants directly involved in price formation. |
| Manipulation-resistant methodology | Recency, update frequency, and validation rules must be published. |
| Public auditability | Publisher identities, data sources, and calculation logic should be open to review. |
| External validation | The feed should be checked periodically against SIP data and other outside sources. |
For oracle operators, this shifts the performance target. Availability alone is not enough. A feed used in execution-quality analysis needs provenance, observable update behavior, and a defensible aggregation method.
That is a different workload from supplying a nominal spot price to a smart contract. Data consumers would need to evaluate not only latency, but also deviation thresholds, publisher independence, validation coverage, and the cost of maintaining the feed. Gas overhead may matter for settlement, but auditability becomes part of the product specification.
What developers and node operators should monitor
The SEC request is an advocacy effort, not an announced regulatory change. The immediate impact is therefore procedural rather than operational. No new acceptance standard has been confirmed in the supplied material.
Still, the proposal gives infrastructure teams a practical test suite for feed readiness:
- Record update latency and frequency instead of reporting only uptime.
- Track deviations against independent market sources.
- Preserve publisher and calculation metadata for audits.
- Test behavior during periods when conventional benchmarks are unavailable.
- Separate price freshness from settlement timing. A low-latency feed is not automatically the right reference for a block-settled trade.
- Model operating costs before expanding coverage to regulated or compliance-sensitive markets.
Pyth’s role in a separate proposed Kalshi product also shows the commercial direction of the infrastructure: Bitcoin.com News reports that Kalshi has filed with the CFTC for a regulated copper perpetual futures contract using a Pyth Network price feed for the underlying spot price.
The key metric now is not whether an oracle can publish a price. It is whether the feed can explain, withstand, and independently validate that price when execution quality is being measured.