Citadel Securities has formally requested that the SEC avoid granting exemptions to tokenized stocks, emphasizing the need for investor protection.
Citadel Securities' Request to the SEC
On July 20, 2025, Citadel Securities sent a formal letter to the SEC opposing the idea of granting regulatory exemptions for tokenized stocks. Under the leadership of Ken Griffin, the letter emphasizes the need for equal treatment of both tokenized and traditional equities.
Impact on Tokenized Stock Market
Citadel Securities' firm stance may prompt other institutional players to also question regulatory flexibility regarding tokenized equities, complicating their integration into traditional U.S. markets.
Regulatory Perspectives and Consequences
Discussions surrounding global regulatory treatment become more pressing as the SEC explores blockchain-based innovations. Historical examples, such as the Paxos BUSD case, highlight the complexities of regulatory exemptions and their potential impact on tokenized equities.
With Citadel Securities' appeal, important questions arise regarding the need for clear regulatory frameworks for tokenized assets, which could significantly affect their market acceptance.
