TechFlow, December 5 — According to The Block, the U.S. Securities and Exchange Commission (SEC) Investor Advisory Committee held a meeting on Thursday, where executives from firms including Citadel Securities, Coinbase, and Galaxy discussed regulatory issues surrounding asset tokenization, revealing clear divisions between traditional finance and the crypto industry on the issue of decentralization.
In a letter submitted Wednesday, Citadel Securities recommended that the SEC impose stricter rules on tokenized securities, requiring full identification of intermediaries involved in transactions—including decentralized trading protocols—a proposal that immediately triggered strong opposition from the crypto industry. Scott Bauguess, Coinbase's Vice President of Regulatory Policy, stated during the meeting that decentralized exchanges (DEXs) should not be subject to the same regulatory obligations as brokers, as doing so would introduce risks that do not currently exist in the environment.
SEC Chair Paul Atkins emphasized that to advance innovation, investment, and employment in the United States, compliant pathways must be provided for market participants to leverage the unique capabilities of new technologies. Meanwhile, outgoing Democratic Commissioner Caroline Crenshaw expressed concerns about potential investor risks posed by tokenized products such as "wrapped securities."
