After a 13-page letter from investment powerhouse Qila Securities advised the US Securities and Exchange Commission that tokenized securities handling finance (DEFI) protocols demand closer regulatory grip, the industry Answered With his correspondence on Friday, he described the arguments as “baseless”.

“Although we share Stedel’s goals in relation to investor protections, regulated markets, and the integrity of the national market system, we do not agree that achieving these goals always requires registration as a traditional SEC intermediary and, in certain circumstances, cannot be met by persons signed by A166, by sec. Orca Creative, lawyer JW Verritt and Uniswap Foundation.

Castle Securities claimed that DeFi Protocol could act as an exchange or brokerage, requiring registration and regulation. However, the new SEC administration under President Donald Trump this year is looking for ways to give more policy to the crypto industry. and White House crypto advisor Patrick Wittjust Posted on social media site x that his office supports “the need to protect software developers and DeFi.”

“As detailed in our comment letters, Fortress Securities strongly supports tokenization and other innovations that can strengthen America’s leadership in digital finance, but does not require sacrificing the rigorous investor protections that have made U.S. equity markets the global gold standard,” a spokesperson said in an emailed comment.

Stedel’s letter contained “numerous factual inaccuracies and misleading statements,” according to the Defy Coalition’s response. And Jennifer Rosenthal, a spokeswoman for the Defy Education Fund, suggested the firm was protecting its business interests.

“It’s easy for Citadel to question the existence of a technology that threatens its business and significant market share,” Rosenthal said.