Core Viewpoint - The debate surrounding the regulation of "tokenized U.S. stocks" is intensifying, with traditional financial institutions and the crypto industry holding opposing views on whether DeFi trading infrastructure should be treated like traditional exchanges [1] Group 1: Regulatory Perspectives - Citadel Securities submitted a 13-page document to the SEC advocating that most DeFi protocols should be regulated as exchanges to prevent regulatory arbitrage and weaker "shadow markets" [1] - The crypto industry, represented by Scott Bauguess, Vice President of Global Regulatory Policy at Coinbase, is calling for rules that better align with decentralized models [1] Group 2: Future Regulatory Outlook - HSBC indicates that the SEC's final stance remains unclear but does not expect a significant reduction in regulatory intensity for on-chain stock markets aimed at U.S. users compared to traditional exchanges [1] - A regulatory sandbox may emerge as a viable solution for navigating these regulatory challenges [1]