Fidelity Seeks Expedited Crypto Regulation Framework

Fidelity, one of the largest asset managers in the US, has made a significant move by submitting a letter to the Securities and Exchange Commission (SEC). The company is urging regulators to accelerate the development of a regulatory framework for crypto assets.

The letter highlights the need for a unified and clear regulatory structure, particularly for tokenized securities. Fidelity emphasizes that these assets have complex structures, representing various types of assets such as equities, bonds, real estate, or private credit. The company notes that investor rights vary significantly depending on the model, making it challenging to develop a one-size-fits-all approach.

Fidelity also highlights the differences between centralized and decentralized platforms. The company believes that regulators must account for the coexistence of these models. DeFi platforms lack a single operator, which limits their ability to meet standard reporting requirements, creating a regulatory imbalance. Fidelity proposes revising disclosure requirements and using blockchain technology for transaction recording in alternative trading systems (ATS).