HSBC Warns of Escalating U.S. Regulatory Clash Over Tokenized Equities
HSBC reports mounting tensions between Wall Street institutions and crypto leaders over the regulatory future of tokenized equities. The bank highlights decentralized finance (DeFi) protocols as the primary focus of scrutiny, with tokenization evolving from experimental concept to a serious consideration for both traditional finance (TradFi) and DeFi firms.
Citadel Securities argues many DeFi protocols meet exchange standards, while SEC advisory committee meetings reveal stark divisions. TradFi advocates push for existing exchange rules to apply to decentralized trading, while crypto executives demand tailored frameworks for DeFi infrastructure.