Citadel Securities calls on the SEC to strengthen regulation of tokenized stocks to avoid exemptions from securities rules

ChainCatcher news, according to TheBlock, the well-known Wall Street market maker Citadel Securities stated in a letter to the U.S. Securities and Exchange Commission (SEC) that tokenized stocks face resistance.

Citadel urged the SEC to avoid exempting securities rules and instead focus on market liquidity and investor protection. The company is concerned that tokenized assets could siphon liquidity away from traditional markets and noted that investors are confused about who is issuing these assets.