Citadel Securities Urges SEC to Maintain Regulatory Rigor on Tokenized Equities

Citadel Securities has submitted a formal letter to the U.S. Securities and Exchange Commission, advocating against regulatory exemptions for tokenized public equities. The firm acknowledges technological innovation but warns against mischaracterizing such assets as anything other than securities.

The letter emphasizes that tokenized U.S. equities clearly qualify as securities under existing frameworks. While targeted rule adjustments may be necessary to accommodate blockchain's Immutable characteristics, Citadel argues the core regulatory approach should remain unchanged.

This stance comes as the SEC's crypto Task Force seeks to clarify digital asset classifications. Market participants await further guidance on how traditional securities laws will apply to blockchain-based financial instruments.