Citadel Securities Sounds Alarm: SEC’s Hasty Tokenized Securities Launch Could Backfire

Wall Street's quiet giant just threw a grenade into the SEC's regulatory sandbox. Citadel Securities—the $22B behemoth that executes 40% of US retail trades—warns regulators are playing with fire by rushing tokenized securities to market.

Speed Kills (Markets)

Forget 'move fast and break things.' When you're dealing with digitized stocks and bonds, broken means bankrupt. The firm's white paper (buried under 37 pages of legalese) suggests the SEC's 'crypto-lite' approach could trigger a chain reaction of settlement failures.

Goldman's Already Loading the Cannons

Insiders whisper the investment bank has a $5B tokenized debt product queued up—waiting for one regulatory green light before flooding the market. Meanwhile, BlackRock's BUIDL fund keeps vacuuming up blockchain talent like a hedge fund at a Stanford hackathon.

The Closing Paradox

Here's the kicker: the same firms warning about speed are racing to build infrastructure. Maybe because whoever controls the pipes controls the next trillion in assets. Welcome to finance's 'do as I say, not as I do' era.