The SEC is discussing the issue of tokenization regulation, and the traditional financial and crypto industries are clearly divided on the issue of decentralization

The Securities Exchange Commission (SEC) Investor Advisory Committee held a meeting on Thursday with executives from companies such as Citadel Securities, Coinbase, and Galaxy to discuss the regulation of asset tokenization, which revealed the clear divide between the traditional finance and crypto industries on the issue of decentralization.
Citadel Securities, in a letter filed Wednesday, recommended that the SEC impose stricter rules on tokenized securities, requiring full identification of intermediaries involved in transactions, including decentralized exchange protocols, a proposal that immediately sparked a backlash from the crypto industry. Scott Bauguess, vice president of regulatory policy at Coinbase, told the meeting that decentralized exchanges (DEXs) cannot be subject to the same regulatory obligations as brokers, as this would introduce risks that do not exist in the current environment. SEC Chairperson Paul Atkins emphasized that to drive innovation, investment and jobs in the United States, compliance pathways must be provided for market participants to take advantage of the unique ability of new technologies. Outgoing Democratic Commissioner Caroline Crenshaw has expressed concern about the risks that tokenized products such as "packaged securities" could pose to investors.