Express
Citadel Securities and DeFi Sector Engage in Debate on Regulatory Issues in SEC Communication
Summary: Investment giant Citadel Securities has submitted a 13-page letter to the SEC, suggesting stricter regulation on decentralized finance (DeFi) protocols dealing with tokenized securities. In response, the DeFi industry issued its own letter last Friday, stating that Citadel Securities' arguments are 'baseless'. The new letter to the SEC, signed by DeFi Education Fund, Andreessen Horowitz ...
Investment giant Citadel Securities has submitted a 13-page letter to the SEC, suggesting stricter regulation on decentralized finance (DeFi) protocols dealing with tokenized securities. In response, the DeFi industry issued its own letter last Friday, stating that Citadel Securities' arguments are 'baseless'.
The new letter to the SEC, signed by DeFi Education Fund, Andreessen Horowitz (a16z), DigitalChamber, Orca Creative, J.W. Verret, and Uniswap Foundation, expressed disagreement with the notion that achieving goals of investor protection, market order, and national market system integrity always requires registration like traditional SEC intermediaries, and that in some cases, these requirements can be met through well-designed on-chain markets.
Citadel Securities believes DeFi protocols may operate as exchanges or brokers that need to be registered and regulated. However, under the current administration led by President Donald Trump, the new management at the SEC has been seeking more policy flexibility for the crypto industry. White House crypto advisor Patrick Witt also expressed support for 'protecting software developers and the necessity of DeFi' on social media platform X.
A spokesperson for Citadel Securities commented via email, stating, 'As detailed in our letter, Citadel Securities strongly supports tokenization and other innovations that can strengthen the U.S.'s leadership in digital finance, but this does not mean sacrificing strict investor protection measures, which have made the U.S. stock market the global gold standard.'
The response from the DeFi alliance stated that Citadel Securities' letter contains 'multiple factual inaccuracies and misleading statements.' A spokesperson for DeFi Education Fund, Jennifer Rosenthal, stated that the company is protecting its business interests. Rosenthal said, 'Citadel Securities is questioning the existence of a technology that threatens its business and significant market share, which aligns with its interests.'
Tags:
Link: Citadel Securities and DeFi Sector Engage in Debate on Regulatory Issues in SEC Communication [Copy]
