Citadel News & Analysis

SEC Plans for Blockchain Trading of Stocks Raises Investor Concerns

The SEC has proposed a plan to allow stocks to be traded on the blockchain, which investor Michael Burry warns could lead to significant issues for investors. If implemented, stocks could be tokenized without company consent and traded 24/7, potentially leading to market fragmentation. Burry and Citadel Securities have expressed concerns about the implications for investor rights, such as voting and dividends. The plan may introduce a 'shadow' market, fragmenting liquidity and investor protections.