Citadel Urges SEC to Regulate Tokenized Stocks Like Tradtional Securities

Amidst the growing wave of tokenized stocks, a prominent hedge fund firm, Citadel Securities, has issued a strong warning to the Securities and Exchange Commission (SEC). They are urging the SEC to apply traditional regulatory rules to these digital assets, arguing that their function should dictate their treatment. Citadel’s concerns stem from a fundamental principle – if a token represents ownership in a company and is traded for profit, it should be considered a security under existing regulations, regardless of how it is executed on DeFi platforms.