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Citadel Sparks Crypto Fury by Urging SEC to Regulate DeFi
6 Dec
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, 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.
Citadel's letter to the SEC on December 2, 2025, specifically addressed tokenized stocks and DeFi trading, arguing that DeFi platforms' operations align with the legal definitions of exchanges and brokers. The firm advocates for a technology-agnostic regulatory approach, meaning DeFi entities and developers would face stringent rules akin to those for broker-dealers in TradFi.
