Regulatory Battle Over Tokenized U.S. Stocks Escalates, HSBC Says
A regulatory battle is escalating over tokenized U.S. stocks, with TradFi firms like Citadel Securities clashing with crypto advocates on DeFi exchange oversight.Summary
HSBC reported that the debate over regulating tokenized equities in the U.S. is intensifying, marked by a clash between Traditional Finance (TradFi) firms and crypto executives. Citadel Securities has urged the SEC to regulate decentralized finance (DeFi) trading protocols as exchanges, arguing that broad exemptions could foster a "shadow-market" with weaker investor protections. Conversely, crypto industry members, like Coinbase's Scott Bauguess, advocate for rules tailored specifically to decentralized exchange models. SEC Chair Paul Atkins seeks compliant innovation pathways, while Commissioner Caroline Crenshaw expressed concerns over tokenized equity risks. Analysts suggest the SEC is unlikely to allow on-chain equity markets with significantly lighter protections than traditional venues, potentially favoring a regulatory "sandbox" approach or, eventually, fully permissioned blockchains. Despite the conflict, all parties agree that tokenization is set for significant growth.
(Source：CoinDesk)