Fidelity Seeks Regulatory Clarity on Crypto Market Infrastructure

Fidelity, a global provider of investment management services, has submitted a detailed letter to the U.S. Securities and Exchange Commission (SEC) requesting regulatory clarity on key aspects of cryptocurrency market infrastructure.

The company's submission highlights the need for updated standards on tokenized securities, new reporting requirements for decentralized finance (DeFi), and explicit guidance on distributed ledger technology.

Fidelity emphasized that tokenizing a security does not change its legal status as a security. The firm pointed out the importance of preserving rights and obligations attached to digital representations, particularly for issuer-sponsored tokens which provide full ownership rights and voting privileges.