Wall Street firms challenge U.S. SEC's pro-crypto plans for tokenization and stablecoins

On Tuesday, major Wall Street institutions including JPMorgan, Citadel, and SIFMA met with the U.S. SEC's crypto task force to raise concerns over the regulator's pro-crypto direction. The firms warned that exemptive relief for tokenized securities and some DeFi projects could destabilize markets, while U.S. banks also argued that yield-bearing stablecoins may drain deposits and threaten the traditional lending system. Tether has meanwhile received approval to launch a USA₾ stablecoin in the U.S. under the Genesis Act framework.