Citadel Bets Big on Crypto—SEC Rules Be Damned

Wall Street's quiet giant is throwing gasoline on its crypto trading desk. Again.

Despite—or perhaps because of—the SEC's regulatory crackdown, Citadel Securities plans to double its digital asset operations this year. No timid 'dipping toes in' here—just full-scale deployment of capital and tech.

The move signals institutional defiance: regulated or not, crypto markets are too lucrative to ignore. One hedge fund MD quipped, 'They’ll trade tornadoes if there’s a spread to capture.'

Meanwhile, retail traders still fight over memecoin scraps. Some things never change.

Crypto Expansion Under Eased SEC Regulatory Plans

Per a Reuters report, the firm is looking into crypto expansion as a part of its “strategic plan,” under the new SEC regulatory regime.

“We’re excited by the prospects of the SEC coming out with the rule set,” said Esposito. “So crypto is definitely a space we’re going to get bigger in, and we’re excited about the prospects”

Citadel touted in February that it is targeting major exchanges like Coinbase and Binance, looking to become a liquidity provider for crypto.

Citadel President Warns US Govt. Debt: A ‘Ticking Time Bomb’

Besides the company’s crypto plans, President Esposito stressed that mounting government debt levels are a “ticking time bomb.” The Government’s reaction to this crisis is “super important” at this time, he added.

The US deficit has been a growing concern recently among several financial leaders. For instance, JP Morgan CEO Jamie Dimon said this week that the national debt will create a “tough time” for the bond market and will eventually spread.

Coinbase CEO Brian Armstrong has warned that Bitcoin could replace USD eventually, if lawmakers fail to address America’s alarming debt.

“I love Bitcoin, but a strong America is also super important for the world. We need to get our finances under control,” he wrote to his 1.5 million followers on X.

@brian_armstrong has warned that bitcoin could replace the USD as the world’s reserve currency if lawmakers fail to address America’s debt.#Bitcoin #USDhttps://t.co/2NHd9jLGwv

Early this year, VanEck suggested that accumulating Bitcoin could help offset a portion of the country’s mounting national debt.

The US Treasury’s plan to acquire up to 1 million Bitcoin over five years and holding it as a long-term store of value WOULD strengthen the country’s balance sheet, the asset manager noted.