Citadel Wants DeFi Regulated Like Wall Street, But Uniswap Founder Isn’t Having Any Of It
Citadel Securities is pushing the SEC to apply full exchange and broker-dealer requirements to DeFi protocols, rejecting calls for lighter rules for tokenized trading platforms.
Regulators Face Pressure To Treat DeFi As Traditional Market Intermediaries
Citadel told the SEC that DeFi platforms involved in trading tokenized U.S. equities should not receive broad exemptions from federal exchange definitions.
The firm said decentralized protocols often match buyers and sellers using non-discretionary algorithms, which it argued aligns with the statutory definition of an exchange.
The letter said many DeFi participants act as broker-dealers when they receive transaction-based compensation.
Citadel warned that granting exemptions would create two inconsistent regulatory regimes for the same securities, violating the Exchange Act’s technology-neutral principles.
Fair Access And Market Integrity Are Core Themes In Citadel’s Argument
Citadel …
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