Top Wall Street Firms Met With SEC Crypto Task Force to Discuss DeFi Concerns
Top Wall Street firms including JPMorgan, Citadel, and SIFMA met with the SEC to express concerns about the agency's proposed exemptions for tokenized securities and decentralized finance (DeFi) projects. They warned that broad regulatory exemptions could undermine investor protections, risk market disruptions, and harm the U.S. economy. SIFMA highlighted the October crypto flash crash as a cautionary example of potential instability if tokenized securities are allowed outside standard securities regulations. The SEC is preparing to issue exemptions for crypto innovation, enabling projects to avoid securities law violations for certain activities. This regulatory move comes as legislative efforts to establish a federal crypto market structure stall in the Senate due to disputes among stakeholders, including disagreements between DeFi advocates, SIFMA, and banking interests over stablecoin regulation.
