Breaking! Citadel 'bombards' SEC: Tokenized stocks cannot be given the green light!
Citadel Securities, one of the world's largest market makers, suddenly attacked the SEC this week, publicly urging the regulatory agency to never grant exemptions for tokenized stocks! In simple terms, Citadel believes that if stocks become on-chain tokens and can bypass traditional regulations, it will drain liquidity from the stock market, throwing both retail and institutional investors into chaos.
What is Citadel afraid of? Liquidity being 'bled out', IPOs facing more difficulties!
Citadel's submitted letter points out three major risks:
Liquidity Black Hole: Tokenized stocks may siphon funds away from the traditional stock market, creating a new funding pool that 'institutions can't enter and retail investors can't understand'; pension funds and large banks can only watch helplessly.
IPO Hit Hard: The US stock market IPO is already struggling, if private companies can issue tokens for financing directly, who will still go through the traditional listing process?
Investors are confused: Anyone can issue tokenized stocks, ordinary retail investors can't tell whether the backing is a listed company or a shell team, increasing the risk of stepping on mines.
Supporters Stand Firm: Tokenization is the future! 24-hour trading, fractional shares freely bought.
Exchanges like Coinbase and Robinhood support tokenization for simple and straightforward reasons:
Trading Revolution: Stocks on-chain can be bought and sold 24/7, settled in seconds, and you can buy 0.0001 shares of Apple, allowing students to become Apple shareholders.
Cost Cut in Half: Skip brokers and clearinghouses, transaction fees drop to zero.
But Citadel retorted: 'This is regulatory arbitrage, not real innovation!'
SEC's 'Open Conspiracy': Innovation Exemption VS Traditional Power Struggle
SEC Chairman Paul Atkins originally wanted to promote the 'Innovation Exemption' policy - simplifying the stock tokenization process, and even opening a regulatory sandbox for experimentation. But when Citadel raised a ruckus, the SEC found itself in a dilemma:
Aligning with traditional institutions? Offending Coinbase and millions of retail investors could ruin Trump's 'crypto hegemony' policy;
Strong Push for Tokenization? If liquidity is really drained, who bears the responsibility for a stock market crash?
Key Indicator: Republican SEC Commissioner Hester Peirce has expressed support for Citadel, demanding tokenization must strictly adhere to current regulations!
Retail Investor Opportunity: Ambush these three types of coins, avoid regulatory landmines!
Although giants are fighting, the wave of tokenization can't be stopped! Smart money has already laid out its plans:
Compliance Platform Token: Coinbase (COIN) stock price resists falling; if tokenization is relaxed, trading volume will surge, directly benefiting.
RWA (Real World Asset Token) Leaders: Ondo (ONDO), Polyx (POLYX) - 21Shares has submitted an application for an ONDO ETF, the most stable track for real asset tokenization.
Staking Public Chains: Ethereum (ETH), Solana (SOL) - BlackRock's Ethereum ETF attracted $426 million in a single day! If tokenized stocks explode, public chain gas fees and staking demand will surge.
Ailes' Sharp Commentary:
Citadel's attack appears to shout 'protect the market', but in reality, they fear their vested interests being disrupted! But history proves: Financial innovation is like a flood; it's better to let it flow than to block it. The SEC's 'Innovation Exemption' will eventually be implemented, and tokenized stocks will become the next engine for wealth accumulation - whoever positions themselves in compliant assets first will reap the greatest rewards!
Follow me for more:
(Complete Interpretation of SEC's 'Innovation Exemption': These 5 tokenization projects are most likely to be approved!)
(Trump's crypto holdings update! Is trading coins with the president stable?)
Do you think tokenized stocks will become a new trend? Place your bets in the comments!
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