Fidelity, one of the world’s largest asset management companies, has called on the SEC to take action regarding cryptocurrencies.
Accordingly, Fidelity called on the SEC to clarify regulations regarding cryptocurrency trading and remove uncertainty on the subject.
This call was made as part of a process in which the SEC’s Task Force, chaired by Hester Peirce, is soliciting opinions from market participants.
Urgent Action Needed Regarding Cryptocurrencies!
In its latest comment letter to the SEC, Fidelity stated that regulators should establish a clear framework that allows brokerage firms to buy, sell, store, and facilitate digital assets in alternative trading systems (ATS).
At this point, the company emphasized that cryptocurrencies are no longer outside the system and need to be integrated into the existing financial system as soon as possible.
According to Fidelity, current regulations are still insufficient and unclear for the integration of cryptocurrencies into the existing financial system. The company also noted that there are many uncertainties regarding intermediary institutions, arguing that it needs to be clarified whether these institutions have the right to offer cryptocurrency custody or trading services.
In its letter, Fidelity stated that establishing a comprehensive regulatory framework and clear rules for the trading of tokenized securities issued by third parties is the most important and critical issue.
Fidelity stressed the urgent need to update the rules, particularly regarding the trading of tokenized securities. According to the company, it is still unclear which category tokenized assets fall into.
The company also emphasized the need to bridge the regulatory gap between centralized exchanges and decentralized finance (DeFi) platforms.
Fidelity argued that the current framework does not adequately reflect DeFi structures that lack a central intermediary, and that due to the nature of DeFi, enforcing the SEC’s current reporting obligations as is could create an excessive burden.
*This is not investment advice.
