Ken Griffin’s Citadel Urges SEC to Treat Tokenized Shares Like Traditional Stocks

Key Points

1. Citadel Securities submitted a letter to the SEC’s Crypto Task Force advocating for equal treatment of tokenized equities and traditional securities.

2. The firm argues that 'look-a-like' tokenized products should not receive more flexible regulatory treatment as they meet the definition of securities.

3. Citadel warns that allowing different standards for tokenized equities could create shadow markets, fragment liquidity, and introduce risks like counterparty issues and confusion over voting rights.

4. The letter calls for the SEC to collaborate with the CFTC and foreign regulators to prevent cross-border regulatory loopholes.

5. Citadel emphasizes the need to uphold existing regulatory frameworks to avoid unfair advantages for a subset of market participants.