Citadel

DeFi groups slammed Citadel Securities for urging tougher SEC regulation, calling the firm's position “flawed.” Industry participants warned that broadening SEC authority risks undermining innovation and decentralization in decentralized finance.

Citadel Securities has lodged a forceful objection with the SEC to a proposal seeking exemptive relief for tokenized U.S. equities and broader DeFi applications, arguing the risks outweigh the benefits. The letter targets market structure, investor protection, and what Citadel calls regulatory arbitrage.