According to @jchervinsky, Citadel’s letter characterizing everyone in crypto as an intermediary appears designed to establish standing to sue once the SEC adopts its long-promised innovation exemption, highlighting a legal strategy that could follow the rule’s release (source: @jchervinsky). He states that traditional finance is poised to run the 2023 crypto policy playbook, implying imminent legal challenges and policy confrontation around the SEC’s innovation exemption (source: @jchervinsky). For traders, this flags near-term regulatory headline risk and timing volatility around the SEC’s innovation exemption adoption and any subsequent litigation by TradFi firms, making policy calendars and court filings critical catalysts to monitor (source: @jchervinsky).