Citadel Securities' letter to the U.S. Securities and Exchange Commission (SEC), calling for decentralized finance (DeFi) platforms and tokenized U.S. stocks to be regulated like traditional exchanges and brokers, has sparked debate among experts.

In a Dec. 2 letter to SEC Secretary Vanessa Countryman, Citadel said tokenized stocks could make trading faster, improve settlement, and give investors more options. But the firm stressed these benefits need to come with the same protections that keep markets fair and safe.

“Ultimately, tokenized securities must succeed on the merits, rather than via regulatory exemptions; therefore, while we support Commission initiatives to champion innovation and position the U.S. as the leader in digital finance, it is important not to override key investor protections when trading tokenized securities,” the letter reads.

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