Citing Coinotag, Citadel Securities has called on the SEC to regulate DeFi platforms offering tokenized US stocks under existing securities laws, rejecting broad exemptive relief. The firm argues that such platforms likely qualify as exchanges or broker-dealers under the Exchange Act, and that granting exemptions would create parallel regulatory regimes. The recommendation has drawn strong backlash from the crypto community, with critics warning it could stifle innovation and drive development offshore. The Blockchain Association and SIFMA have also weighed in, with the latter supporting uniform regulation to protect investors. Tokenized money market funds have reached $9 billion in value, highlighting the growing significance of the issue.
Citadel Securities Urges SEC to Regulate DeFi Tokenized Stocks Under Securities Laws
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