Citadel Securities has called on the U.S. Securities and Exchange Commission (SEC) to reject a proposed exemption for decentralized finance (DeFi) platforms that trade tokenized U.S. stocks. The firm argues that these platforms function similarly to traditional exchanges and present significant risks related to transparency, compliance, and custody. Citadel stresses the importance of maintaining investor protections while acknowledging the need for innovation in the financial sector. The crypto industry has criticized Citadel's stance, highlighting recent departures of its legal staff to crypto firms and noting that its CEO has invested in a Solana-focused company. This opposition underscores the ongoing tension between traditional financial institutions and emerging DeFi technologies.