Citadel Securities Advocates for Stricter DeFi Tokenized Stock Regulation
Market maker Citadel Securities has urged the SEC to implement stricter regulations on DeFi platforms trading tokenized stocks. The firm argues that DeFi developers and wallet providers should not receive broad exemptive relief and should adhere to existing securities laws, stating that trading the same security under two different regulatory regimes contradicts the Exchange Act.
This stance has drawn criticism from the crypto community. Jake Chervinsky of the Blockchain Association questioned Citadel's motives, suggesting it opposes innovations that remove intermediaries. Uniswap founder Hayden Adams echoed this sentiment, noting the conflict between market makers and open-source, peer-to-peer technology.
Traditional finance groups like SIFMA and the World Federation of Exchanges support regulatory parity, emphasizing the need for investor protections similar to those for conventional financial instruments, citing recent market volatility as a reminder of regulatory importance.


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Citadel Calls for Strict DeFi Tokenized Stock Regulation, Faces Crypto Pushback
Market maker Citadel Securities has ignited a debate within the digital asset space by advocating for the Securities and Exchange Commission (SEC) ...








