Citadel Calls for DeFi Tokenized Stock Regulation, Sparks Crypto Backlash

Market maker Citadel Securities has urged the SEC to strengthen regulations on decentralized finance (DeFi) regarding tokenized stocks, sparking controversy within the crypto community. In a letter sent to the SEC, Citadel argued that platforms offering tokenized US equities should be subject to securities laws if operating as trading platforms or broker-dealers. They emphasized the need for standardized regulatory frameworks for these digital assets, citing potential conflicts between DeFi regulations and existing ones.