- Fidelity highlighted four prominent recommendations, initiating with continued regulatory development for broker-dealers engaging with crypto assets.
- Peirce has also continuously uplifted firms exploring tokenisation to engage directly with regulators, highlighting a more open stance.
The financial investment company, Fidelity Investments, has appealed to the U.S. Securities and Exchange Commission to ramp up its regulatory advancement for amalgamating crypto assets into current market structures, mainly around alternative trading systems (ATS).
On March 27, Fidelity submitted a letter to the SEC Crypto Task Force, in which it mentioned that the firm widely backs the efforts of the agency to adapt legacy frameworks to emerging technologies.
It also highlights the need to preserve core principles like investor protection, transparency and market integrity. The letter was in reaction to Commissioner Hester Peirce’s December request for information on how national securities exchanges and ATS platforms should manage crypto asset trading.
Fidelity highlighted four prominent recommendations, initiating with continued regulatory development for broker-dealers engaging with crypto assets. The firm highlighted the latest SEC guidance clarifying that broker-dealers may custody both crypto-asset securities and non-security digital assets.
They also referred to it as a “welcome” step but highlighted that further clarity is still required for trading and custody practices.
The Other Mentions of The Letter
Fidelity further mentioned that we look forward to further guidance on a number of other areas critical for broker-dealers to offer custody and trade crypto assets and ease crypto-security trading pairs.
This makes a series of gradual moves by the SEC. In the past few months, the agency has clarified how broker-dealers can manage custody of crypto assets and issued guidance on tokenized securities, indicating a gradual shift toward obliging blockchain-based financial infrastructure.
Peirce has also continuously uplifted firms exploring tokenisation to engage directly with regulators, highlighting a more open stance contrasted to previous enforcement-heavy approaches.
At the same time, a core aim of Fidelity’s letter is the need for transparent rules ruling tokenized securities on ATS platforms. Not only this, but Fidelity suggested that the SEC permit broker-dealers to leverage blockchain for recordkeeping and clarify that easing on-chain settlement would not categorise them as clearing agencies.
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Source: https://thenewscrypto.com/fidelity-urges-sec-to-advance-crypto-rules-for-ats-platforms/
