PANews reported on December 5th that, according to The Block, the U.S. SEC Investor Advisory Committee held a meeting on Thursday regarding asset tokenization, with executives from Citadel, Coinbase, and Galaxy participating to discuss regulatory pathways. Citadel recommended that the SEC strictly define the role of intermediaries such as decentralized trading protocols, which drew opposition from some crypto enthusiasts who argued that traditional rules are inapplicable to DeFi architectures. Coinbase stated that rule differences should be reviewed on a case-by-case basis to avoid imposing inapplicable obligations. SEC Chairman Atkins stated that a compliance path should be provided to promote innovative development in tokenization.


Legal experts are concerned that transforming ESMA into the “European SEC” may hinder the licensing of crypto and fintech in the region. The European Commission’s proposal to expand the powers of the European Securities and Markets Authority (ESMA) is raising concerns about the centralization of the bloc’s licensing regime, despite signaling deeper institutional ambitions for its capital markets structure.On Thursday, the Commission published a package proposing to “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties to ESMA, Cointelegraph reported.Concerningly, the ESMA’s jurisdiction would extend to both the supervision and licensing of all European crypto and financial technology (fintech) firms, potentially leading to slower licensing regimes and hindering startup development, according to Faustine Fleuret, head of public affairs at decentralized lending protocol Morpho.Read more
