Wall Street Giants Clash With SEC Over Pro-Crypto Agenda
Top financial institutions including JPMorgan, Citadel, and SIFMA confronted the SEC's crypto task force this week, warning that its aggressive push for tokenized securities and regulatory exemptions could destabilize markets. The meeting revealed deep fissures between regulators and traditional finance over how to handle digital assets.
Wall Street's argument hinges on consistency: financial instruments must be regulated by economic function, not technological novelty. SIFMA's distributed materials framed exemptive relief for crypto as a potential systemic risk, while participants criticized the SEC's proposed carveouts for DeFi projects.
The debate reflects a fundamental tension—Wall Street seeks to extend existing frameworks to crypto, while the SEC appears willing to innovate. Market participants now watch whether the commission will temper its approach amid mounting institutional pressure.
