Capital markets News

Citadel Securities has concerns re SEC tokenization exemptions

Citadel Securities

Citadel Securities has written to the SEC Crypto Task Force, urging the SEC to carefully approach any regulatory changes to accommodate digital securities or tokenized equities. In particular it is concerned that large entities might be granted regulatory exemptions, which won’t be available to incumbents.

“While we strongly support technological innovations designed to address market inefficiencies, seeking to exploit regulatory arbitrage for ‘look-a-like’ securities is not innovation,” wrote Citadel Securities’ Stephen Berger.

His views echo a similar letter sent recently to the task force by the Securities Industry and Financial Markets Association (SIFMA). While Citadel didn’t mention names, only referring to “proposals by large, well-established firms”, it was clearly alluding to a Coinbase letter sent in March. Citadel’s desire to maintain “best execution, fair access, and pre- and post-trade transparency” was also mentioned this week by the CEO of Charles Schwab.

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