Citadel Securities urges SEC not to give regulatory advantages to tokenized actions

The signature of Wall Street He calls on the American Securities Regulator, asking to treat tokenized actions as traditional values, without falling into regulatory exceptions for this new asset.

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• The firm warned about liquidity and confusion risks for investors.
• Coinbase and Kraken They want to launch actions based on Blockchain.
• The Sec Evaluate one “Exception by innovation” For new assets.

One of the most influential market creation firms in the world, Citadel Securitieshe has urged the United States Stock Exchange and Securities Commission (SEC) to keep a strict and uniform approach when dealing with tokenized actions.

In a letter sent by Citadel to the Sec, reviewed by The Blockthe company argues that These must comply with the same rules as traditional values and not benefit from regulatory exemptions, a position that marks distance against the impulse of certain crypto firms that seek to launch these assets with more flexible rules.

What are the tokenized actions?

Tokenized actions are digital representations of traditional actions that exist and are negotiated in Blockchain. Unlike traditional bags, which operate from Monday to Friday at specific times, these digital versions allow 24/7 operations, which promises unprecedented accessibility for global investors.

Companies like Coinbase and Kraken They have shown interest in offering these assets, which could place them in direct competition with traditional stock market corridors if the Sec Authorizes these products.

The position of Citadel: Without exemptions or shortcuts

Regarding interest in tokenized actions, Citadel “Founded by billionaire Ken Griffin,” urged the agency to avoid granting exemptions to the rules of values. The firm argued that, although it supports technological innovation in markets, it does not consider using these advances as a way to exploit regulatory gaps.

“We firmly support the technological innovations designed to solve market inefficiencies,” The letter says. “But taking advantage of regulatory arbitration to create values that only appear to be different is not innovation.”

Citadel He also expressed concern about the potential liquidity drainage from traditional markets to these new formats and the possible confusion of investors regarding who really issues the tokenized asset.

In the SEC: Internal debate and mixed signs

Discussions within the American regulator reflect a turning time for the financial industry. The Republican Commissioner of the Sec, Hester Peirce has clarified that tokenized actions remain values and, therefore, must adjust to the current regulatory framework.

However, the president of the Sec, Paul Atkins, recently pointed to a conference with journalists that the agency is evaluating a “Exception by innovation” that would allow alternative negotiation methods. “It is difficult to anticipate exactly where everything will evolve, but the assets are clearly moving to the network … if you can see, it will tokenize,” “ Indian.

Jaret Seiberg, group analyst Td cowen, explained in a note published on Monday that it is still not clear how the trade of tokenized shares would work, especially in relation to the fixation of the best available price, known as “National Best Bid and Offer” (NBBO).

“The current securities negotiation regime requires transactions to be carried out at the best national price,” Seiberg pointed out. “That is what allows multiple negotiation headquarters to exist. We believe there are obstacles to maintaining that dynamic when the actions are token.”

Citadel Ask for transparency and public process

Finally, Citadel proposed that, instead of issuing regulatory exemptions, the Sec Show round tables and a clear and deliberate regulation process. “It is essential that the commission adopts a transparent approach in evaluating these exemption requests, including public notices and detailed evaluation of costs and benefits,” The letter concluded.

The tension between innovation and regulation continues to climb at a key moment for the future of the financial ecosystem. While some companies push for greater flexibility and disruption, others – as Citadel— They defend the protection of the current framework as a safe for market stability.

Article written by a content editor. Edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain

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