The market-making giant Citadel Securities wrote to the U.S. SEC's special working group on crypto assets this week, opposing the exemption for tokenized equities, stating that such a move could lead to liquidity flowing out of traditional markets and confuse investors regarding the asset issuers. Citadel stated that tokenized equities should adhere to the same regulatory rules as traditional securities, and the SEC should promote related policies by convening roundtable discussions and officially establishing regulations, rather than using "innovation exceptions" to circumvent existing laws. (The Block)

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