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

MarsBitNews · 2026-04-07T01:24:43+00:00

The Blockchain Association submitted a comment letter to the SEC opposing Citadel's proposal to strengthen DeFi regulation, arguing that DeFi developers should not be included under traditional financial regulatory frameworks. They also called on the SEC to advance an "innovation exemption" mechanism to promote technological innovation and the development of on-chain assets.

MarsBitNews

2026-04-07 01:24:43

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Mars Finance news: 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 do not qualify as broker-dealers or exchange operators, and therefore cannot be brought under a regulatory framework designed for traditional financial intermediaries. The organization also urged the SEC to advance an “innovation exemption” mechanism, creating room for regulatory sandbox pilots for on-chain assets and tokenized securities, and noted that a comprehensive rulemaking process takes a long time—potentially delaying technical implementation and driving innovation overseas. Previously, Citadel had suggested that the SEC strengthen DeFi regulation through a formal legislative process.

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