Representatives from JPMorgan, Citadel and SIFMA met with the SEC crypto task force to raise objections to the agency’s planned exemptive relief for tokenized securities and certain DeFi projects. SIFMA warned broad exemptions could undermine investor protections and destabilize markets, citing October’s $19 billion crypto flash crash as an example of systemic risk. The meeting occurred as SEC Chair Paul Atkins prepares to formalize exemptions by the end of January and while a Senate crypto market-structure bill has stalled amid industry disputes, including a Coinbase vs. banking-lobby fight over stablecoin reward rules.

Officials from JPMorgan, Citadel and SIFMA met with the SEC crypto task force to object to planned exemptive relief; SIFMA explicitly warned broad exemptions could undermine investor protections and destabilize markets and cited the October $19B flash crash; timing coincides with SEC Chair Atkins’ planned formalization of exemptions and a stalled Senate market-structure bill.