Citadel Securities warns the SEC against granting exemptions for tokenized equities, emphasizing the need for equal regulatory standards to protect investors and maintain market integrity.
Citadel Securities has urged the SEC to enforce traditional regulations on tokenized equities, asserting that these products should comply with the same investor protections as conventional stocks. The firm expressed concerns about potential risks such as liquidity fragmentation and regulatory arbitrage, advocating for a transparent rule-making process that includes all market participants. Citadel emphasized that any adjustments to regulations must apply uniformly across the market.