Fidelity Seeks Regulatory Clarity for Crypto-Asset Trading

Fidelity Investments has made a significant move in its efforts to advance the regulatory framework for Alternative Trading Systems (ATS) platforms involving crypto assets.

The company submitted a letter to the U.S. Securities and Exchange Commission (SEC) on March 27, outlining four key recommendations to support the development of ATS platforms that can facilitate trading and custody of crypto assets.

One of the main concerns highlighted by Fidelity is the need for regulatory clarity in regards to broker-dealers engaging with crypto assets. The company notes that while recent SEC guidance has clarified that broker-dealers may custody both crypto-asset securities and non-security digital assets, further clarity is still required on trading and custody practices.

Another key recommendation made by Fidelity is the need for transparent rules governing tokenized securities on ATS platforms. The company also suggested that the SEC permit broker-dealers to leverage blockchain for recordkeeping and clarify that easing on-chain settlement would not categorize them as clearing agencies.