- Fidelity Investments, an $18 trillion asset manager, urged the Securities and Exchange Commission (SEC) to develop rules allowing broker-dealers to trade crypto assets.
- The firm made four specific recommendations, including guidance on tokenized securities trading and clarifying on-chain settlement rules.
- The letter was a direct response to a request for information from SEC Commissioner Hester Peirce last December, seeking ways to lower barriers for crypto trading platforms.
In a significant push for regulatory clarity, Fidelity Investments called on the Securities and Exchange Commission (SEC) on Friday to establish a framework for trading crypto assets directly in brokerage accounts. Consequently, the $18 trillion asset manager’s five-page comment letter addressed to the SEC’s Crypto Task Force urged specific actions. According to the letter, Fidelity recommended developing a regulatory framework for broker-dealers and issuing guidance on trading tokenized securities on Alternative Trading Systems (ATS).
Furthermore, the firm asked the SEC to consider how intermediated and disintermediated trading venues could coexist. Meanwhile, Fidelity also requested the commission clarify that a broker-dealer may facilitate on-chain settlement without triggering the definition of a “clearing agency.” Accordingly, this clarification would avoid imposing additional regulatory burdens on firms handling digital asset transactions.
The letter was a response to Commissioner Hester Peirce’s request for information, who leads the SEC’s Crypto Task Force. “Trading platforms and market participants need to be able to operate under the certainty of clear market structure rules”, Peirce stated in her December request. Consequently, she asked how the SEC could encourage innovation and lower barriers for platforms trading crypto asset securities.
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