Derived from 币界网, a coalition of DeFi advocates, legal experts, and venture firms has responded to Citadel Securities' call for stricter regulation of DeFi protocols handling tokenized securities. The group argues Citadel's concerns are driven by competitive self-interest rather than investor protection. In a letter to the U.S. Securities and Exchange Commission (SEC), the coalition refutes Citadel's claims as 'unfounded' and warns that applying traditional regulatory frameworks to DeFi could stifle innovation. Citadel, one of the largest market makers in traditional finance, maintains that DeFi platforms offering similar market functions should be registered with the SEC to ensure market integrity. The debate reflects broader tensions over how to regulate decentralized systems under existing financial laws.
DeFi Pushes Back Against Citadel's Call for Stricter Tokenized Market Regulation
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Summary
A coalition of DeFi advocates, legal experts, and venture firms has pushed back against Citadel Securities’ call for stricter regulation of tokenized markets, arguing the move is driven by competitive self-interest. In a letter to the SEC, the group dismissed Citadel’s claims as unfounded and warned that applying traditional frameworks to DeFi could hinder innovation. Citadel, a major market maker, insists DeFi platforms must register with the SEC to ensure market integrity. The debate touches on broader issues, including stablecoin regulation and Countering the Financing of Terrorism, as regulators seek to balance oversight with innovation.
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