Blockchain Association Opposes Citadel's DeFi Regulatory Proposal, Supports SEC's Innovation Exemption Framework

Odaily News The Blockchain Association has submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) in response to Citadel's previous proposal to strengthen DeFi regulation. The Blockchain Association stated that DeFi protocol developers are not brokers or exchange operators and should not be subject to regulatory frameworks designed for traditional financial intermediaries.

The organization also called on the SEC to advance an "innovation exemption" mechanism to provide a regulatory pilot space for on-chain assets and tokenized securities. It pointed out that the comprehensive rule-making cycle is lengthy and could delay technology implementation and drive innovation overseas. Previously, Citadel had suggested that the SEC strengthen DeFi regulation through formal legislative processes. (The Block)