DeFi industry refutes Citadel's call for stricter tokenized security rules

The DeFi industry has pushed back against a call from major U.S. market maker Citadel Securities for stricter regulation of tokenized securities, The Block reported. Citadel had previously submitted a letter to the U.S. Securities and Exchange Commission (SEC) opposing regulatory exemptions for tokenized stocks in DeFi. The firm argued that while many DeFi platforms claim to be decentralized, they often have identifiable intermediaries such as developers and governance groups. In response, the DeFi Education Fund, a16z, the Chamber of Digital Commerce, and the Uniswap Foundation sent a letter to the SEC. They countered that autonomous software and technological infrastructure cannot be considered intermediaries under the SEC's legal definition because traders maintain control over their own assets.