Ken Griffin's Citadel Securities Opposes SEC DeFi Regulation, Crypto Industry Reacts

Financial giant Citadel Securities, led by billionaire Ken Griffin, has formally challenged the U.S. Securities and Exchange Commission's (SEC) proposed regulatory framework for decentralized finance (DeFi). In a critical letter to the SEC, Citadel argued that the current proposal could stifle innovation and harm market liquidity. This move has ignited strong reactions across the cryptocurrency and traditional finance sectors, with many industry leaders expressing concern over potential overreach. The debate centers on the SEC's "DeFi" rule, which aims to bring more decentralized platforms under existing securities laws. Pro-crypto advocates view Citadel's stance as a significant defense against restrictive policies that could impact the entire digital asset ecosystem, including major tokens like Bitcoin (BTC) and Ethereum (ETH). The outcome of this regulatory clash is poised to shape the future of blockchain innovation and crypto market structure in the United States.