Fidelity calls on the U.S. SEC to improve the regulatory framework for broker-dealers' crypto activities on alternative trading systems.

PANews reported on March 23 that, according to Cointelegraph, Fidelity Investments sent a letter to the U.S. Securities and Exchange Commission (SEC) on March 22, urging the agency to continue improving the regulatory framework for broker-dealers offering, custodiing, and trading crypto assets on alternative trading systems (ATS). The third-largest asset manager in the U.S. stated that developing comprehensive rules for tokenized securities trading, including rules for trading tokenized securities issued by third parties, is crucial.

In its letter, Fidelity points out that tokenized instruments differ in their issuance structure, legal attributes, and valuation models. For example, tokenized real-world assets encompass various asset classes such as stocks, real estate, and bonds. The company also calls for bridging the regulatory gap between centralized and decentralized trading systems, considering how they can coexist and develop, including reforming existing reporting rules to reflect the objective reality that DeFi trading platforms lack central authority and cannot provide detailed financial reporting as required by the SEC. Furthermore, Fidelity recommends that the SEC issue guidance allowing brokers to use distributed ledger technology for alternative trading systems and record keeping.