{"id":61937,"date":"2025-12-04T16:32:37","date_gmt":"2025-12-04T16:32:37","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=61937"},"modified":"2025-12-04T16:32:37","modified_gmt":"2025-12-04T16:32:37","slug":"citadel-pushes-sec-for-defi-oversight-crypto-heavyweights-push-back-harder","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=61937","title":{"rendered":"Citadel Pushes SEC For DeFi Oversight, Crypto Heavyweights Push Back Harder"},"content":{"rendered":"<div>\n<p>Citadel, an investment management firm, has asked the US Securities and Exchange Commission (SEC) to <a class=\"general-link\" href=\"https:\/\/www.sec.gov\/files\/citadel-securities-120225.pdf\" target=\"_blank\" rel=\"noopener nofollow\">regulate <\/a>decentralized finance (DeFi), the same way it does for traditional finance (TradFi). Naturally, this has caused backlash in the crypto community since the entire premise of DeFi is to be \u201cother than\u201d the traditional financial archetype, which is central in nature.<\/p>\n<p>Hayden Adams, CEO of Uniswap, a decentralized crypto exchange, minced no words in his accusations as he ripped into Citadel.<\/p>\n<p>In a post shared on X on 4 December 2025, Adams wrote that Citadel\u2019s founder Ken Griffin <span class=\"cf0\">\u201cscrewed over Constitution DAO\u201d before \u201ccoming for <\/span><span class=\"cf0\">DeFi<\/span><span class=\"cf0\">, asking the SEC to treat software developers of decentralized protocols like centralized intermediaries.\u201d He also claimed Citadel has been \u201clobbying behind closed doors on this for years.\u201d<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">First Ken Griffin screwed over Constitution DAO <\/p>\n<p>Now he&#8217;s coming for DeFi, asking the SEC to treat software developers of decentralized protocols like centralized intermediaries <\/p>\n<p>Bet Citadel has been lobbying behind closed doors on this for years<\/p>\n<p>Okay thats all pretty bad, but\u2026 <a href=\"https:\/\/t.co\/ExoNhbhadu\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/ExoNhbhadu<\/a><\/p>\n<p>\u2014 Hayden Adams <img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/16.0.1\/72x72\/1f984.png\" alt=\"\ud83e\udd84\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> (@haydenzadams) <a href=\"https:\/\/twitter.com\/haydenzadams\/status\/1996423513251459417?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">December 4, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Moreover, Adams had an issue with Citadel\u2019s claim that DeFi cannot provide fair access to markets. In his post, he claimed Citadel to be the king of shady online market makers and that it has a problem with fintechs that can lower the barrier to liquidity creation.<\/p>\n<p><strong>EXPLORE:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-crypto-to-buy\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">Top 20 Crypto to Buy in 2025<\/a><\/strong><\/p>\n<h2>Citadel Advises SEC: Regulate Crypto In A Technologically Agnostic Manner<\/h2>\n<p>All this came about when Citadel sent a <a class=\"general-link\" href=\"https:\/\/www.sec.gov\/files\/citadel-securities-120225.pdf\" target=\"_blank\" rel=\"noopener nofollow\">letter <\/a>to the SEC on 2 December 2025, about tokenized stocks and DeFi trading, in which it claimed that DeFi platforms connect buyers and sellers in a manner that fits the legal definition of an exchange or a broker.<\/p>\n<p>The market maker argued that DeFi shouldn\u2019t get any special treatment just because it runs on blockchains. Further, the letter suggested to the SEC that DeFi ecosystem players, including <!--StartFragment --><span class=\"cf0\">trading app operators, smart contract developers, validators, and liquidity providers, should be strictly regulated.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Citadel Securities thinks any DeFi protocol that facilitates trading of tokenized securities \u201cundermines\u201d US regulatory framework by acting as an exchange <a href=\"https:\/\/t.co\/BIfGhUHy6s\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/BIfGhUHy6s<\/a><\/p>\n<p>\u2014 Frank Chaparro (@fintechfrank) <a href=\"https:\/\/twitter.com\/fintechfrank\/status\/1996369904824717333?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">December 4, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Citedal noted that many of these ecosystem actors earn fees and often influence how trades are routed, similar to how middlemen operate in TradFi. The marketmaker has asked the SEC to take a technology-agnostic approach towards DeFi, i.e., the same rules will apply despite the technology or system used.<\/p>\n<p>Additionally, in its letter, Citadel compared tokenized stock ts to a shadow equity market outside the official US banking system, which could split liquidity and bypass already existing protections for investors.<\/p>\n<p>If Citadel wins this, <!--StartFragment --><span class=\"cf0\">developers, front-end operators, wallets, market makers, and even DAO participants could face the same strict rules as broker-dealers.<\/span><\/p>\n<p><strong>EXPLORE:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/crypto-presales\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">The 12+ Hottest Crypto Presales to Buy Right Now<\/a><\/strong><\/p>\n<h2>Citadel Pushes Hard, Crypto Groups Push Back Harder<\/h2>\n<p><!--StartFragment --><\/p>\n<p><span class=\"cf0\">Crypto groups and prominent crypto personalities have already started to push back, claiming that open-source protocols and validator networks are nothing like Wall Street Intermediaries and that they shouldn\u2019t have to register.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Concerning <a href=\"https:\/\/t.co\/UC6W1hXIzZ\" rel=\"nofollow\" target=\"_blank\">https:\/\/t.co\/UC6W1hXIzZ<\/a><\/p>\n<p>\u2014 Brian Armstrong (@brian_armstrong) <a href=\"https:\/\/twitter.com\/brian_armstrong\/status\/1996451829581050119?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">December 4, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><span class=\"cf0\">Citadel, however, has held its ground, saying that the SEC does not have the authority to create separate rulebooks for tokenized equities. Only Congress has the ability to decide on those changes.<\/span><\/p>\n<p>Aside from Adams, Blockchain Association CEO Summer Mersinger has <a class=\"general-link\" href=\"https:\/\/theblockchainassociation.org\/blockchainassociation-statement-on-citadel-letter-to-sec\/\" target=\"_blank\" rel=\"noopener nofollow\">pushed back<\/a> against Citadel\u2019s view, stating that Citadel\u2019s case <!--StartFragment --><span class=\"cf0\">\u201clacks grounding in the Exchange Act, judicial precedent, or commission practice.\u201d<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The following statement is attributed to <a href=\"https:\/\/twitter.com\/SKMersinger?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">@SKMersinger<\/a> on Citadel\u2019s letter to the SEC, which claims DeFi developers, smart-contract authors, and self-custody wallet providers should be treated as intermediaries subject to securities-law registration.<a href=\"https:\/\/t.co\/3odP2JepU0\" rel=\"nofollow\" target=\"_blank\">https:\/\/t.co\/3odP2JepU0<\/a> <a href=\"https:\/\/t.co\/SFieREfHEH\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/SFieREfHEH<\/a><\/p>\n<p>\u2014 Blockchain Association (@BlockchainAssn) <a href=\"https:\/\/twitter.com\/BlockchainAssn\/status\/1996373078591578552?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">December 4, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>She further argued that the SEC should not treat software developers as financial middlemen. She explained that forcing developers to register as <!--StartFragment --><span class=\"cf0\">broker-dealers would hurt U.S. competitiveness and drive innovation overseas.<br \/>\n<\/span><\/p>\n<p><strong>EXPLORE:\u00a0<a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/next-1000x-crypto\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\">Next 1000X Crypto \u2013 Here\u2019s 10+ Crypto Tokens That Can Hit 1000x This Year<\/a><\/strong><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h2>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Citadel wrote a letter to the SEC, urging it to regulate DeFi like TradFi, sparking industry backlash    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Blockchain Association CEO Summer Mersinger has argued that developers shouldn\u2019t face broker-dealer rules    <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Citadel has called tokenized stocks a \u201cshadow equity market\u201d outside U.S. protection    <\/li>\n<\/ul><\/div>\n<p><!--EndFragment --><\/p>\n<p><!--EndFragment --><\/p>\n<p><!--EndFragment --><\/p>\n<p><!--EndFragment --><\/p>\n<p><!--EndFragment --><\/p>\n<p><!--EndFragment --><\/p>\n<p><!--EndFragment --><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/altcoins\/citadel-pushes-sec-for-defi-oversight-crypto-heavyweights-push-back-harder\/\">Citadel Pushes SEC For DeFi Oversight, Crypto Heavyweights Push Back Harder<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Citadel, an investment management firm, has asked the US Securities and Exchange Commission (SEC) to regulate decentralized finance (DeFi), the same way it does for traditional finance (TradFi). Naturally, this has caused backlash in the crypto community since the entire premise of DeFi is to be \u201cother than\u201d the traditional financial archetype, which is central [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-61937","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/61937","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=61937"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/61937\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=61937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=61937"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=61937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}