TLDR
- Fidelity Investments submitted a comprehensive letter to the SEC’s Crypto Task Force requesting enhanced regulatory clarity for digital asset operations
- The submission emphasized the need for updated guidelines on alternative trading systems (ATS) handling blockchain-based securities
- Fidelity advocated for regulatory standards enabling ATS platforms to facilitate trading of externally-issued tokenized securities
- The financial giant requested modernized reporting frameworks accommodating decentralized platform structures
- Federal banking authorities jointly affirmed that tokenized securities adhere to identical capital requirements as their traditional counterparts
Fidelity Investments has formally submitted a detailed proposal to the United States Securities and Exchange Commission requesting enhanced regulatory clarity surrounding digital assets and blockchain-based securities. The communication was delivered on Friday directly to the SEC’s specialized Crypto Task Force.
FIDELITY IS PUSHING THE SEC TO OPEN THE DOOR FOR CRYPTO MARKETS
Fidelity told the SEC it’s “critical” to create clear rules so broker-dealers can custody, trade, and support crypto assets on regulated platforms.
They’re also pushing for:
✅️ Clear standards for tokenized… https://t.co/w8a2I8NTZ9 pic.twitter.com/0XGEzIDaUg
— CryptosRus (@CryptosR_Us) March 22, 2026
The submission came as a direct response to SEC Commissioner Hester Peirce’s December solicitation for industry feedback. Peirce had specifically requested stakeholder perspectives on appropriate regulatory approaches for national securities exchanges and alternative trading systems engaged in cryptocurrency operations.
Fidelity expressed general alignment with the SEC’s initiative to modernize existing regulatory frameworks for emerging technologies. However, the asset management giant emphasized that significant guidance gaps remain across multiple critical operational areas.
The financial institution presented four primary policy recommendations within its formal submission. The initial priority centered on continued regulatory development specifically tailored for broker-dealers operating within the digital asset ecosystem.
Fidelity acknowledged recent SEC guidance confirming that broker-dealers possess the authority to maintain custody of both crypto securities and non-security digital assets. While recognizing this as meaningful progress, the firm stressed that additional specificity remains necessary regarding trading mechanisms and custodial best practices.
Tokenized Securities Need Clear Standards
A substantial segment of Fidelity’s communication concentrated on tokenized securities. These instruments represent traditional financial assets—including equities, fixed-income securities, real property, and private debt—that are either originated or maintained on distributed ledger technology.
Fidelity urged the SEC to establish definitive regulatory parameters that would authorize ATS platforms to facilitate trading of tokenized securities originated by third-party issuers. The firm emphasized that broker-dealers require certainty regarding asset classification frameworks without incurring disproportionate legal exposure.
The organization additionally requested SEC confirmation that tokenized representations of conventional securities should maintain regulatory equivalence with their underlying traditional assets. Such clarification could substantially reduce regulatory ambiguity between blockchain-based and traditional market infrastructures.
Roberto Braceras, Fidelity’s general counsel, articulated that the SEC should evaluate frameworks allowing centralized and decentralized trading infrastructures to coexist within a harmonized regulatory environment.
Decentralized finance platforms inherently cannot fulfill identical reporting obligations as traditional exchanges due to their distributed governance structures. Fidelity contended that current regulatory requirements impose disproportionate compliance burdens on these alternative systems.
Blockchain Recordkeeping and Banking Rules
Fidelity additionally petitioned the SEC to authorize broker-dealers to leverage blockchain infrastructure for regulatory recordkeeping obligations. The firm requested confirmation that utilizing on-chain settlement mechanisms would not inadvertently subject broker-dealers to clearing agency regulatory requirements.
SEC Chairman Paul Atkins has publicly indicated receptiveness toward continuous capital market operations and has permitted market participants to conduct tokenized trading experiments.
In a parallel development, three federal banking regulatory agencies issued a coordinated statement during March. The Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency jointly declared that tokenized securities remain subject to identical capital requirements as the underlying assets they represent.
The regulatory agencies explicitly stated that the technological infrastructure utilized for security issuance or trading operations does not alter capital treatment methodologies.
Commissioner Peirce has actively encouraged organizations exploring tokenization initiatives to maintain direct engagement with regulatory authorities, representing a notable departure from previous enforcement-focused regulatory strategies.
