Citadel Pushes SEC for Stricter DeFi Oversight Amid Crypto Industry Backlash
Citadel Securities has escalated its campaign for SEC intervention in decentralized finance, targeting platforms offering tokenized stocks. The firm contends DeFi protocols—including smart-contract developers and wallet providers—function as unregistered exchanges or broker-dealers, demanding equal enforcement of securities laws.
The crypto industry retaliated swiftly. Critics frame Citadel’s stance as a monopolistic maneuver, with the Blockchain Association warning heavy-handed regulation risks driving innovation offshore. Uniswap founder Hayden Adams fired back, highlighting contradictions in Citadel’s argument about "fair access" while operating in traditional markets with inherent advantages.
This clash underscores a widening rift: Wall Street seeks to impose legacy frameworks on DeFi, while crypto advocates defend permissionless innovation. The outcome could redefine whether tokenized assets operate under unified rules or fragmented regimes.