Citadel Securities Advocates for Robust Regulation of Tokenized Stocks in DeFi
In a significant move poised to reshape the regulatory landscape of digital assets, global financial market maker Citadel Securities has formally urged the U.S. Securities and Exchange Commission (SEC) to impose stringent oversight on decentralized finance (DeFi) platforms offering tokenized U.S. stocks. This intervention underscores a growing demand from established financial entities for clarity and compliance within the burgeoning DeFi sector.
The Core of Citadel’s Regulatory Stance
Citadel Securities’ primary contention is that DeFi platforms facilitating the trading of tokenized representations of U.S. equities should unequivocally be subject to existing securities laws. Their argument centers on the principle that the underlying asset—U.S. stocks—mandates regulatory adherence, irrespective of the technological wrapper or decentralized nature of the trading venue.
DeFi platforms offering tokenized US stocks should be regulated under securities laws and not get exemptive relief from the SEC.
The firm specifically highlighted two critical points in its recommendation to the SEC:
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**Application of Securities Laws:** Tokenized U.
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