What did Citadel ask the SEC regarding DeFi?

Citadel requested the SEC regulate decentralized finance (DeFi) using the same rules applied to traditional finance (TradFi).

Who criticized Citadel's proposal to the SEC?

Uniswap CEO Hayden Adams strongly criticized Citadel's proposal, accusing them of hypocrisy and lobbying.

Why does Citadel want DeFi regulated?

Citadel argues that DeFi platforms legally operate as exchanges or brokers and should not receive special treatment.

Home / Business and Economy / Citadel Sparks Crypto Fury by Urging SEC to Regulate DeFi

Citadel Sparks Crypto Fury by Urging SEC to Regulate DeFi

6 Dec

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Summary

Citadel petitioned the SEC to regulate DeFi like traditional finance.
Uniswap CEO Hayden Adams accused Citadel of hypocrisy and lobbying.
Citadel argues DeFi platforms fit legal definitions of exchanges/brokers.

Citadel Sparks Crypto Fury by Urging SEC to Regulate DeFi

Citadel, a prominent investment management firm, has formally requested the U.S. Securities and Exchange Commission (SEC) to apply traditional finance (TradFi) regulatory frameworks to decentralized finance (DeFi). This proposal has generated significant opposition within the cryptocurrency community, as it challenges the fundamental ethos of DeFi, which aims to operate independently of centralized financial structures.

Hayden Adams, CEO of Uniswap, voiced strong criticism, asserting that Citadel founder Ken Griffin unfairly targeted DeFi after previous controversies. Adams accused Citadel of engaging in years of behind-the-scenes lobbying. He also refuted Citadel's claims about DeFi's market access, highlighting Citadel's own history in online market-making and its opposition to fintech innovations that democratize liquidity.