Citadel Securities has formally recommended that U.S. securities regulators adopt a carefully calibrated approach to crafting rules for tokenized securities.
In a comment letter submitted to the SEC’s Crypto Task Force, the firm advocated for methodical regulatory development of securities tokenization frameworks. Citadel emphasized that pre-existing regulations like the Howey Test struggle to address the novel structural characteristics of blockchain-based assets despite their potential benefits.
The firm acknowledged that tokenized securities enable global market access and cross-border trading efficiency but require tailored oversight mechanisms. Citadel stressed the necessity of formal rulemaking procedures to provide reliable regulatory certainty before institutional capital can fully engage with tokenized markets.
A balanced regulatory philosophy prioritizing both market integrity and technological innovation was proposed as essential for the sector’s growth. This approach aims to establish transparent, adaptable rules protecting investors while supporting continued development of securities tokenization initiatives.