Citadel Securities has raised alarms about the potential risks of decentralized finance (DeFi) and tokenized equities, suggesting they could harm the U.S. stock market and consumer protections. The firm specifically criticizes platforms like Uniswap for seeking exemptions that could allow them to operate without the responsibilities of traditional brokerages. In response, DeFi proponents accuse Citadel of trying to stifle innovation to protect its own interests.

The DeFi Education Fund and venture capital firm a16z have urged the SEC to establish a regulatory safe harbor for blockchain applications like Uniswap and Coinbase Wallet. Their proposal aims to clarify broker rules, allowing non-custodial and decentralized applications to operate without the burden of broker-dealer regulations.