DeFi organizations, including the DeFi Education Fund, a16z, The Digital Chamber, and Uniswap Foundation, have criticized Citadel Securities' stance on tokenized stock trading. They argue that Citadel's push to classify intermediaries as necessary is misleading, as decentralized protocols operate without custody and should not be subject to the same regulations as traditional exchanges.
While Citadel supports the concept of tokenization, it emphasizes the need for investor protections. This debate comes as the SEC recently permitted the DTC to offer tokenized assets, indicating a willingness to embrace innovation. The ongoing discussion about the classification of securities versus commodities remains crucial as liquidity and crypto markets continue to develop.
DeFi Groups Challenge Citadel's Tokenized Securities Approach
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