Crypto groups slam Citadel for urging tighter DeFi tokenization rules

A coalition of crypto groups, including Andreessen Horowitz and the Uniswap Foundation, has responded to a letter from Citadel Securities urging the SEC to tighten regulations on DeFi platforms offering tokenized US equities. The crypto groups argue that Citadel’s analysis of securities laws is flawed and would unnecessarily extend registration requirements to many entities involved in DeFi transactions. They share Citadel’s goals of investor protection and market integrity but believe these can be achieved through thoughtfully designed onchain markets, not solely through traditional SEC intermediaries. The groups contend that regulating decentralized platforms under existing securities laws is impractical and could stifle innovation. They also dispute Citadel’s characterization of autonomous software as an intermediary, emphasizing DeFi’s unique approach to market risks and investor protection. Citadel initially argued that exempting DeFi platforms would create a dual regulatory system and harm investors by lacking traditional safeguards, a stance that has already drawn criticism from industry leaders.

(Source：Cointelegraph)