#noticiascrioto 🚨🔥Citadel Securities has officially informed the U.S. Securities and Exchange Commission to halt the rush to introduce tokenized stocks into the financial system.

In a letter sent on Monday to the SEC's Cryptocurrency Task Force, the trading firm warned that moving too quickly could create confusion for investors and tilt the scales in favor of certain exchanges and private companies.

The firm made this statement after SEC Chairman Paul Atkins indicated interest in rewriting existing rules to support cryptocurrency-based securities.

According to Bloomberg, Citadel is urging the SEC to follow a structured rule-making process before allowing tokenized securities to become effective. They are asking the agency to avoid shortcuts that could open the door to regulatory loopholes.

Citadel made it clear in the letter that tokenized products should succeed on their true merits, not because they found a backdoor through unclear rules.

Citadel warns that tokenization could undermine IPOs

A tokenized security, by definition, is a cryptocurrency-based version of a stock or asset. It represents the asset but does not grant direct ownership.

These tokens are traded on blockchain networks rather than through traditional brokers. They can also be fractioned into small, affordable parts that anyone can buy, which is one of the reasons digital platforms like Coinbase and Robinhood have promoted them. But Citadel's letter argues that without proper rules, allowing these products to launch could harm the already fragile IPO market.