Citadel Asks SEC to Halt Tokenized Stocks Over Policy Shift
Citadel Securities has urged the SEC to halt tokenized stocks, warning that rushing them into the market could confuse investors and unfairly advantage certain firms. The trading firm demands a formal rulemaking process with public input before approving any tokenized stocks. Meanwhile, SEC Chair Paul Atkins is exploring an “innovation exception” to foster crypto-based securities and has backed new stablecoin legislation requiring dollar-for-dollar reserves in low-risk assets. The US House recently approved the GENIUS Act, CLARITY Act and Anti-CBDC Surveillance Act, aiming to modernize financial infrastructure and clarify token rules. Industry supporters hail these moves as DeFi wins, but critics like Senator Warren warn of insufficient consumer protections. Traders should note the push for regulation clarity may delay tokenized stocks but ultimately shape long-term market stability.
Neutral
The call by Citadel to pause tokenized stocks introduces short-term uncertainty and could slow initial adoption, while the SEC’s exploration of an innovation exception and clear stablecoin rules signal longer-term support for tokenized securities. The mix of regulatory pushback and formal rulemaking suggests a balanced outlook: delay and caution now, but potential growth later once frameworks are in place.