Citadel Securities Advocates for Uniform Regulatory Standards for Tokenized Equities

Citadel Securities, the trading behemoth founded by billionaire Ken Griffin, has urged the U.S. Securities and Exchange Commission (SEC) to apply the same regulatory standards to tokenized equities as traditional listed stocks. In a July 21 letter to the SEC's crypto Task Force, the firm cautioned against granting broad exemptions for digital assets that mimic equity securities.

The company emphasized its support for market infrastructure innovation but distinguished between genuine technological advancement and regulatory arbitrage. "Tokenized securities must succeed by delivering real innovation and efficiency to market participants, not through self-serving regulatory loopholes," Citadel wrote.

The rise of tokenized equities, issued on blockchains as alternatives to conventional securities, has gained traction as crypto firms seek more flexible regulatory treatment. Citadel, however, contends these products meet the definition of securities and should comply with existing rules.