Overview
- Citadel Securities told the SEC that some decentralized systems coordinating trades in tokenized U.S. stocks meet exchange or broker‑dealer definitions and should follow existing rules.
- The filing argues that front‑end operators, smart‑contract developers, validators and liquidity providers often act like intermediaries through fees or order influence and could require registration and best‑execution duties.
- Uniswap founder Hayden Adams denounced the move and the Blockchain Association said the legal theory lacks grounding in the Exchange Act, warning it would treat software authors as custodial intermediaries.
- At an SEC Investor Advisory Committee session, Citadel executive Jonah Platt pressed for strict treatment of tokenized‑equity venues, while Coinbase’s Scott Bauguess called for a tailored approach for decentralized protocols.
- Regulators have not announced a decision, and coverage also noted Citadel’s concurrent bet on compliant blockchain infrastructure through a reported $500 million investment in Ripple.