Fidelity Investments is pushing the U.S. Securities and Exchange Commission to move faster in building clear rules that would allow crypto assets to fit more smoothly into existing market systems, especially on alternative trading platforms.
The firm said it supports modernizing traditional regulations to keep pace with new technologies, but emphasized that fundamentals like investor protection, transparency, and market integrity shouldn’t be compromised in the process.
The message came in response to a request from SEC Commissioner Hester Peirce, who had asked industry players for input on how regulated exchanges and trading venues should handle crypto trading going forward.
Fidelity pushes for clearer crypto rules for broker-dealers
Fidelity Investments has outlined several practical steps it believes the U.S. Securities and Exchange Commission should take next, starting with clearer rules for broker-dealers working with crypto assets.
The firm said it is positive about the recent guidance which allows broker-dealers to hold crypto securities and other digital assets, but noted that some questions remain, like the manner in which they may be traded safely.
The recommendations indicate a change in the regulatory environment. The SEC has been gradually releasing guidance on crypto custody and tokenized securities over the past few months, indicating a move towards accepting blockchain finance in the traditional financial system, rather than on the fringes.
The firm says this kind of clarity matters because broker-dealers can’t always know every technical detail behind a digital asset, yet they still carry legal responsibility for how it’s classified.
Fidelity says tokenized securities should follow same rules as originals
Fidelity also believes that if a traditional security is turned into a token, it should generally be regulated the same way as the original asset.
That consistency, it argues, would reduce confusion between on-chain and traditional markets. More broadly, the firm is urging regulators to start planning for a future where conventional financial institutions and decentralized trading platforms operate side by side.