# Citadel Warns SEC on Tokenized Equity Carveouts

*Author: Bankless*
*Published: Jul 22, 2025*
*Source: https://www.bankless.com/fr/read/citadel-warns-sec-on-tokenized-equity-carveouts*

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Citadel Securities has urged the SEC to treat tokenized equities the same as traditional securities—cautioning that blockchain-enabled trading without robust regulation could harm liquidity, fairness, and transparency in U.S. markets.

### What’s the Scoop?
- **Formal Letter to SEC:** Citadel submitted a letter warning that a rushed rollout of tokenized equities might drain liquidity from traditional markets and give crypto platforms unfair advantages.
- **Round-the-Clock Trading Risks:** The firm claims 24/7, fractional tokenized trading could confuse investors and destabilize the current equity infrastructure.
- **Call for Rulemaking:** Citadel is demanding a formal notice-and-comment process, not piecemeal exemptions or informal SEC staff guidance.
- **Transparency Concerns:** The letter flags fragmentation risks, opaque off-exchange trading, and lack of consolidated reporting for tokenized versions of NMS securities.
- **Broader Pushback:** Citadel’s position aligns with industry groups like SIFMA and SEC Commissioner Hester Peirce, who have emphasized the need for clear public oversight.