#CryptoClarityAct

Citadel Against Tokenization of Stocks — Letter to SEC Questions Future Loosening

Citadel Securities, one of the largest market makers on Wall Street, has opposed regulatory exemptions for tokenized stocks — in a letter sent to the SEC's crypto group.

📌 What’s the essence:

— Citadel demands a level playing field for traditional and tokenized securities

— Highlights risks: liquidity outflow, regulatory arbitrage, confusion among investors

— Criticism is directed at projects like Coinbase and Kraken, promoting trading of tokenized stocks

🌐 Tensions are rising:

— Tokenized stocks allow for 24/7 trading and more accessible infrastructure

— However, analysts believe issues arise: determining the best price, compatibility with existing exchange standards

💬 SEC Chair Gary Gensler acknowledged:

"Tokenization is inevitable. But it requires discussions, transparency, and participation from all market players."

📌 What this means:

— Wall Street will not simply watch: traditional players are ready to fight for control

— The SEC's decision on tokenized stocks could set the tone for the entire RWA sector in the U.S.

— A balance between innovation and regulation