## SEC Faces the Challenge: Are Crypto Stocks "Greenlit" or Not?

The debate over crypto stocks has moved from expert private discussions to official SEC meetings. HSBC recently reported that pressure from both sides is increasing: on one side, traditional market makers, and on the other, blockchain technology advocates. The hesitation of US regulators has become the focal point of this controversy.

### Two conflicting views on regulation

**The "tough" side of TradFi:** Citadel Securities, one of the largest market makers, sent a 13-page letter to the SEC. Their position is clear — DeFi platforms are legally _equivalent_ to exchanges and must comply with all existing regulations. They argue that loosening rules would lead to market chaos, regardless of the investor protection reasons cited.

**The "flexible" crypto side:** Scott Bauguess of Coinbase has a completely different perspective. He believes DeFi operates under different principles — open source, automatic liquidity, decentralization. Applying traditional regulations to them would weaken these systems with unnecessary requirements.

### SEC's stance: Balancing innovation and control

Paul Atkins, SEC leader, offered a middle ground: tokenized assets are part of the modernization of the US stock market, but compliance with regulations is an unnegotiable requirement. At the same time, Caroline Crenshaw warned of potential risks — from asset management issues, market integrity, to protecting traditional investors.

### HSBC and practical steps forward

While the theoretical debate continues, HSBC is not paralyzed by uncertainty. They are expanding their Crypto Deposit Service — a tool enabling cross-border transfers on blockchain at lightning-fast speeds. From the UK, Singapore, Hong Kong to Luxembourg, HSBC plans to enter the US and UAE markets as early as next year.

### "Sandbox" scenario — SEC's practical approach?

HSBC experts predict that the SEC cannot completely ignore licensing issues. Instead, a tightly regulated "sandbox" could be the solution: a controlled testing environment where on-chain transactions are allowed to operate alongside current regulations.

Accordingly, fully licensed blockchains will be the future — systems with clear management and oversight, protecting investors while allowing crypto stocks to grow.

### Conclusion: The train has left the station

Although the SEC hesitates and parties continue to argue, the development of asset tokenization seems unstoppable. HSBC, DeFi platforms, and regulators are all trying to keep up with a trend that everyone knows will reshape the global stock market.