Citadel Securities: "Tokenized stocks should be subject to the same regulations as traditional stocks"

Citadel Securities reportedly conveyed to the U.S. Securities and Exchange Commission (SEC) that tokenized stocks should be subject to the same regulations as existing stocks.

According to The Block on the 23rd (local time), Citadel Securities stated in a letter to the SEC, "We strongly support technological innovation that addresses market issues," but also emphasized, "Exploiting regulatory loopholes using pseudo-securities is not innovation." The firm continued, "Tokenized stocks should be treated just like traditional stocks."

Unlike existing stocks, tokenized stocks feature 24/7 trading. As major crypto exchanges like Coinbase and Kraken are reportedly considering launching these products, boundaries in the traditional financial market are said to be tightening.

Additionally, Citadel Securities asserted, "Tokenized stocks could siphon liquidity from traditional markets" and claimed, "Confusion over asset issuers may negatively impact investor protection." The company further stressed, "The SEC must not allow exceptional regulatory treatment."