The Blockchain Association opposes Citadel's regulatory stance on DeFi and supports the SEC's innovative exemption framework.

SmartContractAuditor · 2026-04-07T00:50:58+00:00

The Blockchain Association has provided feedback to the U.S. Securities and Exchange Commission, opposing Citadel's call for increased regulation of DeFi, arguing that DeFi developers should not be considered traditional financial intermediaries. They recommend advancing an "innovation exemption" mechanism to promote technological development.

SmartContractAuditor

2026-04-07 00:50:58

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Odaily Planet Daily reports: The Blockchain Association has submitted a comment letter to the U.S. Securities and Exchange Commission (SEC), responding to Citadel’s prior claims about strengthening DeFi regulation. The Blockchain Association said that DeFi protocol developers are not brokers or exchange operators and therefore cannot be included in the regulatory framework designed for traditional financial intermediaries.

The organization also urged the SEC to advance an “innovation exemption” mechanism, creating regulatory pilot space for on-chain assets and tokenized securities, and noted that a comprehensive rulemaking process takes longer—potentially delaying technical implementation and prompting innovation to move elsewhere. Previously, Citadel had suggested that the SEC strengthen DeFi oversight through a formal legislative process. (The Block)

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