After a 13-page letter from funding powerhouse Citadel Securities suggested the U.S. Securities and Change Fee that decentralized finance (DeFi) protocols dealing with tokenized securities demand a more in-depth regulatory grip, the trade answered again with its personal correspondence on Friday, calling the arguments “baseless.”
“Whereas we share Citadel’s goals with respect to investor protections, orderly markets, and the integrity of the nationwide market system, we disagree that reaching these objectives at all times necessitates registration as conventional SEC intermediaries and can’t, in sure circumstances, be met by thoughtfully designed onchain markets,” in response to the brand new letter to the SEC, signed by the DeFi Schooling Fund, enterprise capital agency Andreessen Horowitz (a16z), the DigitalChamber, Orca Artistic, lawyer J.W. Verret and the Uniswap Basis.
Citadel Securities contended that DeFi protocols could function as exchanges or brokerages in want of registration and regulation. Nonetheless, this 12 months’s new administration of the SEC below President Donald Trump has been looking for methods to offer the crypto trade extra coverage leeway. And White Home crypto adviser Patrick Witt simply posted on social media website X that his workplace helps the “want to guard software program builders and DeFi.”
“As detailed in our remark letters, Citadel Securities strongly helps tokenization and different improvements that may reinforce America’s management in digital finance, however this doesn’t require sacrificing the rigorous investor protections which have made U.S. fairness markets the worldwide gold customary,” a spokesperson stated in an emailed remark.
Citadel’s letter included “a number of factual mischaracterizations and deceptive statements,” in response to the DeFi coalition’s response. And a DeFi Schooling Fund spokeswoman, Jennifer Rosenthal, recommended the agency is defending its enterprise pursuits.
“It’s handy for Citadel to query the existence of a know-how that threatens its enterprise and vital market share,” Rosenthal stated.
