Galaxy Digital Urges SEC to Let Tokenized Securities Trade on AMMs

Galaxy Digital filed a letter with the SECs Crypto Task Force this week, arguing that automated market makers (AMMs) should be allowed to trade tokenized securities without registering as exchanges. The submission directly challenges positions taken by SIFMA, the lobbying group that represents traditional Wall Street broker-dealers. Galaxy Says AMMs Fall Outside Exchange Rules In its filing, Galaxy Digital laid out why AMMs that meet specific criteria should not qualify as exchanges under the Securities Exchange Act of 1934. The firm pointed to features like deterministic settlement, full transparency, non-discriminatory access, and the absence of discretionary control. Galaxy also argued that liquidity providers on these platforms are not dealers because they trade for their own accounts, have no customers, and do not solicit orders. The firm proposed a conditional innovation exemption that would include whitelisting, volume caps, and required disclosures to preserve market integrity. The letter frames the debate as a structural question about whether tokenized stocks should move through decentralized protocols or remain confined to traditional market infrastructure. banks and brokerages are playing a cynical game: backing bitcoin and crypto in public while their DC lobbyists delay, obstruct, and oppose real integrationbitcoin has already won. tokenized stocks are the next frontwe just answered SIFMA/citadel in a new letter to the SEC pic.twitter.com/CXnQxelhzT Alex Thorn (@intangiblecoins) April 16, 2026 SIFMA has pushed to keep these assets within legacy systems, a position Galaxy described as inconsistent with the SECs own technology-neutral stance. Broader Regulatory Shift The filing arrives as the SEC expands its pro-crypto posture. The agency launched Project Crypto earlier this year to bring capital markets onto blockchain rails. In March 2026, the SEC and CFTC issued a joint taxonomy classifying digital assets into five categories, including tokenized securities. Galaxy itself became the first NASDAQ-listed company to tokenize its equity on a public blockchain, with a shareholder vote planned for May 2026 through Broadridges governance platform on Avalanche. its been a long road but $GLXY is finally on its way to a US listing. thanks to all who believe in us and congrats to those who have worked so hard to get @galaxyhq to this milestone. lets go! pic.twitter.com/ks23RJYPGY Alex Thorn (@intangiblecoins) April 7, 2025 Whether the SEC sides with Galaxy or SIFMA on AMM classification may determine how tokenized equity markets develop for years to come.