- The Blockchain Association says it has filed an SEC response against Citadel’s arguments on tokenized equities and DeFi.
- The group argues that securities laws regulate intermediaries, not neutral blockchain infrastructure.
- Summer Mersinger says tokenization can modernize capital markets and keep US finance competitive.
Blockchain Association is pushing back against Citadel Securities at the SEC, arguing that tokenized markets should not be regulated under a framework built for traditional intermediaries.
In an X post, the group says it has submitted a formal response rebutting Citadel’s arguments against tokenized US equity securities and DeFi trading protocols.
The filing extends the Blockchain Association’s broader tokenization push in Washington. It follows CEO Summer Mersinger’s recent testimony and the launch of the group’s tokenization workstream, which is focused on building a clearer policy path for blockchain-based market infrastructure.
Blockchain Association Challenges Citadel’s Framing
In its filing, the Blockchain Association argues that Citadel is asking the SEC to treat blockchain rails as though they were the same as exchanges, brokers, or dealers. The group says that it is the wrong legal and policy framework for tokenized markets.
The letter states that tokenized securities are still securities. However, it argues that validators, autonomous smart contracts, non-custodial software, and other blockchain-based tools do not become regulated intermediaries since they support market activity.
According to the filing, federal securities laws regulate individuals engaged in specific activities, not neutral infrastructure itself.
Mersinger Pushes Tokenization as Market Upgrade
In today’s statement, the group says tokenization can support faster settlement, better transparency, stronger infrastructure, and more efficient movement of collateral and assets across the financial system.
Mersinger says, “Tokenization is about bringing better technology to the most important capital markets in the world.”
She also says the filing reflects a broader commitment to “ushering in a market evolution that can make U.S. finance more efficient, more resilient, and more globally competitive.”
In March at the House Financial Services Committee, she argued that tokenization represents the next phase of capital market infrastructure and that the US should adopt a future-focused regulatory approach that allows it to develop domestically.
SEC Filing Puts DeFi Regulation Back in Focus
The new submission also revives a fight that has been building for months around DeFi regulation. The Blockchain Association’s position directly cuts against claims that open blockchain systems should be treated like centralized financial institutions.
That debate intensified after Uniswap founder Hayden Adams accused Citadel of trying to push the SEC toward classifying DeFi developers as broker-dealers.
The Blockchain Association is now asking the SEC to take a different path. Its filing says the Commission already has tools such as exemptive relief and iterative regulatory pathways to support responsible development.
Related: China Urges Banks and Local Authorities to Use Blockchain For Lending Services
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