Citadel warns SEC: Tokenization must deliver real innovation, not regulatory loopholes
As the US regulator explores streamlined rules for securities tokenization, Citadel Securities urges a focus on meaningful innovation.
The US Securities and Exchange Commission’s (SEC) plan to streamline securities tokenization may sound promising, but it is unlikely to benefit investors unless it delivers genuine innovation and efficiency, according to market maker Citadel Securities.
“Tokenized securities must achieve success by delivering real innovation and efficiency to market participants, rather than through self-serving regulatory arbitrage,” Citadel wrote in a statement to the SEC’s Crypto Task Force, as reported by Bloomberg.
Tokenization — the process of representing real-world assets on a blockchain with digital tokens — is often touted for its potential to reduce costs and boost efficiency by minimizing the role of intermediaries, shortening settlement times and enabling fractional ownership of financial assets.
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