On July 23, CoinWorld reported that Citadel Securities, one of the largest market makers globally, submitted a letter to the SEC's cryptocurrency working group opposing the exemption of securities rules for tokenized stocks. The company believes that such assets may lead to a loss of liquidity in traditional markets and create risks for investors in confusing the issuing entities. Citadel emphasized in the letter that while it supports technological innovation, utilizing regulatory arbitrage to issue products that resemble securities is not true innovation. This position was echoed by Republican SEC Commissioner Hester Peirce, who clearly stated that tokenized securities must still comply with existing securities regulations. SEC Chairman Paul Atkins revealed last week that the agency is studying an "innovation exemption" mechanism to allow new types of trading methods.