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Citadel Securities, one of the world's largest market makers, urges SEC to strictly regulate tokenized stocks
Summary: Citadel Securities, one of the world's largest market makers, recently urged the U.S. Securities and Exchange Commission (SEC) to implement equal regulation for tokenized stocks and traditional stocks. In a letter to the SEC's crypto working group this week, the company stated that regulators should avoid granting securities rule exemptions and instead focus on market ...
Citadel Securities, one of the world's largest market makers, recently urged the U.S. Securities and Exchange Commission (SEC) to implement equal regulation for tokenized stocks and traditional stocks. In a letter to the SEC's crypto working group this week, the company stated that regulators should avoid granting securities rule exemptions and instead focus on market liquidity and investor protection. In essence, while we strongly support technological innovations aimed at addressing market inefficiencies, attempting to issue 'securities-like' products through regulatory arbitrage is not innovative. TD Cowen analyst Jaret Seiberg also pointed out in a research report on Monday that there are uncertainties in tokenized trading mechanisms, with some difficulties in optimal price discovery. The traditional stock trading system requires the execution of the national best bid or offer, which forms the basis for multi-platform parallel trading. We believe that maintaining this mechanism will be difficult after stock tokenization. Citadel advocates that the SEC should not grant exemptions and suggests advancing rulemaking through roundtable discussions. The committee must establish a prudent and transparent evaluation process, including a public comment period and a comprehensive cost-benefit analysis, the company emphasized in the letter.
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