Citadel calls SEC to regulate tokenized stocks such as traditional securities and warns of exceptions for crypto-based imitation

Citadel calls SEC to regulate tokenized stocks such as traditional securities and warns of exceptions for crypto-based imitation

regulation of tokenized shares: Citadel calls for measures by the SEC

Recently, Citadel has asked the US stock exchange supervisory authority SEC to regulate tokenized shares similar to traditional shares. This requirement comes in view of the rapidly growing popularity and complexity of crypto-assets and digital financial instruments.

tokenized stocks are digital images of traditional stocks based on a blockchain technology. They enable trading and handling stocks in digital form. However, Citadel warns that exceptional treatment for these crypto-based alternatives could pass the regulatory monitoring, which could bring potential risks for investors and market integrity.

Regulation by the SEC could help create a clear legal framework that guarantees both the protection of investors and the integrity of the markets. It remains to be seen how the SEC will react to this request and what measures are taken to address the challenges and opportunities in the area of tokenized assets.

Overall, the discussion about the regulation of tokenized stocks shows how important it is to create suitable legal framework for innovative financial products in order to support both the dynamic market and to protect investors.