At a recent SEC Investor Advisory Committee meeting, executives from Citadel Securities, Coinbase, and Galaxy discussed regulatory approaches to asset tokenization, revealing a divide between traditional finance and the crypto industry on decentralized regulation. Citadel Securities advocated for stricter SEC oversight of tokenized securities trading, including identifying all intermediaries such as decentralized protocols, and opposed broad exemptions for DeFi. Conversely, Coinbase argued that decentralized exchanges should not be subject to the same regulatory obligations as brokers. SEC Chairman Paul Atkins emphasized the need for compliance pathways to foster blockchain innovation, while Commissioner Caroline Crenshaw warned of investor risks associated with 'wrapped' tokenized stocks.