New crypto fight with the SEC could decide whether Wall Street keeps control when stocks move to blockchain

A public battle is emerging over the future of tokenized stocks, with Wall Street firms like Citadel Securities advocating for integration within existing regulatory structures, while the Blockchain Association argues for a more open approach that reduces incumbent control. The core dispute centers on defining who qualifies as an intermediary in tokenized equity trading. Citadel Securities' position, supported by economist James Overdahl, suggests a broad interpretation that would keep intermediaries like brokers and exchanges central, preserving current market structures. Conversely, the Blockchain Association argues for a narrower, function-based definition, which would allow new players like wallets and smart contract venues to capture value and foster innovation. The SEC's decision on this definition will dictate whether tokenization leads to improved infrastructure within the existing Wall Street system or enables a more decentralized model with new gatekeepers, ultimately deciding who controls the burgeoning tokenized equity market.

(Source：CryptoSlate)