Fidelity urges SEC to move further on crypto activity by broker-dealers
The investment giant told the regulator's crypto task force it supports trading tokenized securities on alternative trading systems and tradfi on-chain integration.
Fidelity Investments has submitted a formal letter to the Securities and Exchange Commission's crypto asset and cyber unit, urging the regulator to advance cryptocurrency activity regulations for broker-dealers. The investment management giant specifically advocated for allowing trading of tokenized securities on alternative trading systems (ATS) and supporting traditional finance integration with blockchain technology.
The letter comes as part of ongoing discussions between major financial institutions and the SEC regarding cryptocurrency regulation frameworks. Fidelity has been increasingly vocal about crypto adoption, having launched Bitcoin services for institutional clients and retail investors through various products. The company's push reflects broader industry efforts to establish clear regulatory pathways for digital asset integration within traditional financial infrastructure.
Fidelity's recommendations could significantly impact how broker-dealers operate in the digital asset space, potentially opening new avenues for institutional crypto trading and custody services. The support for tokenized securities trading on ATS platforms suggests a move toward mainstream adoption of blockchain-based financial instruments, which could bridge the gap between traditional and decentralized finance.
The SEC's response to Fidelity's recommendations will likely influence other major financial institutions' crypto strategies. Market participants will be watching for regulatory clarity on tokenized securities and whether the commission will provide the framework necessary for broader broker-dealer participation in cryptocurrency markets.
Source: Cointelegraph
