Citadel Securities Urges Caution as SEC Considers Regulatory Framework for Tokenized Securities

Key Points

1. Citadel Securities submitted a formal comment letter to the SEC’s Crypto Task Force, advocating for measured regulation of tokenized securities.

2. The SEC’s current regulatory framework, including the Howey Test, faces challenges when applied to blockchain-based assets.

3. Tokenized securities offer benefits like global accessibility and cross-border trading but also present regulatory challenges.

4. Citadel Securities stresses the importance of a formal rulemaking process to provide regulatory certainty for capital deployment.

5. The firm calls for a balanced approach to regulation to ensure market integrity while fostering innovation in tokenized securities.