Citadel Warns Against Tokenization Regulatory Shortcuts


Major market maker Citadel Securities has cautioned the SEC that tokenization must deliver genuine innovation rather than regulatory arbitrage.


The firm submitted a statement to the SEC's Crypto Task Force emphasizing that tokenized securities should benefit investors through real efficiency gains.


#Tokenized real-world assets are currently valued at roughly $25 billion across various platforms.


SEC Chair Paul Atkins has advocated for an "innovation exemption" to encourage tokenization development in capital markets.


Citadel warned that asset tokenization could siphon liquidity from traditional stock markets and create inaccessible pools.


Major players like BlackRock and Franklin Templeton have entered the tokenization space alongside crypto-focused platforms.


JPMorgan's exploration of $BTC-backed loans highlights the challenges traditional banks face entering the #digitalassets space.

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July 23, 2025 at 12:33 AM
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