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Blockchain Association urges against classifying tokenization platforms as financial intermediaries., 2026/04/07 11:09:32
The advocacy organization Blockchain Association has reached out to the U.S. Securities and Exchange Commission (SEC) to counter the claims made by American market maker Citadel Securities regarding tokenized finance and decentralized finance (DeFi) protocols.
Blockchain Association contends that Citadel Securities is urging the SEC to regulate blockchain platforms and tokenized markets in a manner similar to traditional financial intermediaries such as exchanges, brokers, or dealers. However, the advocacy group believes this perspective is legally flawed, as regulation should focus on specific individuals engaged in intermediary activities rather than on a neutral technology.
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The Blockchain Association clarified that tokenization involves representing traditional financial assets within blockchain networks, allowing for ownership and trading on more advanced, programmable platforms. Tokenization has the potential to significantly modernize the financial market infrastructure by simplifying and accelerating settlements, as well as enhancing transparency. The association asserts that asset tokenization can broaden investment opportunities for everyday Americans and improve the competitiveness of the U.S. capital market.
The group emphasized that tokenized securities still qualify as securities. However, securities laws specifically regulate financial intermediaries. This indicates that blockchain validators, autonomous smart contracts, non-custodial software, and other blockchain-based tools cannot be automatically classified as intermediaries solely because they operate in tokenized markets. The technology itself does not become a regulated intermediary, even if it facilitates the functioning of modern financial infrastructure, according to the Blockchain Association.
Previously, SEC Chairman Paul Atkins acknowledged that asset tokenization could revitalize outdated traditional finance and suggested that within a decade, major international banks and brokers would widely tokenize real-world assets (RWA).
