Crypto groups slam Citadel for urging tighter DeFi tokenization rules

Recently, Citadel Securities urged the SEC to apply securities laws to DeFi platforms dealing with tokenized stocks. This proposal could bring new regulations to the DeFi ecosystem, prompting strong backlash from the DeFi Education Fund and other industry participants. They argue that existing regulations should not apply to foster innovation in crypto technology. This controversy is regarded as a significant event that could shake the future of the DeFi market. If Citadel's claims are accepted, they could impact the operation of DeFi platforms and alter investor sentiment. Specifically, tighter regulations might hinder the launch of new projects and investment, potentially slowing growth. Additionally, companies involved in DeFi may have to invest considerable resources to comply with regulations, which could trigger overall market volatility. So far, no specific price trends or direct market impacts have been mentioned, but given the intensifying industry backlash, we might see changes in the supply-demand balance around the $9400 level. The situation warrants close attention going forward.