Citadel Urges SEC to Regulate DeFi Trading of Tokenized Stocks

Market maker Citadel Securities has urged the Securities and Exchange Commission (SEC) to implement stricter controls on decentralized finance (DeFi) systems that allow trading of tokenized US equities. In a letter submitted on Tuesday, Citadel argued that these platforms, which operate using blockchain technology, should not be granted broad exemptions from existing securities regulations when they facilitate trading of equity-based tokens. The firm claimed these platforms essentially mirror the functions of traditional exchanges or broker-dealers, placing them under existing securities rules.