Fidelity Urges SEC Crypto Regulations for Tokenized Securities and ATS/DeFi

Fidelity submitted a 14-page letter to the SEC Crypto Task Force urging clearer crypto regulations for broker-dealers, alternative trading systems (ATS), and tokenized securities—while emphasizing a practical framework that fits both centralized and DeFi venues. The firm welcomed SEC guidance that broker-dealers may custody crypto securities and non-security digital assets, but said operational rules for trading, custody, and oversight still need more clarity under existing crypto regulations. For tokenized securities, Fidelity asked the SEC to treat tokenized versions of familiar assets (stocks, bonds, real estate, and private credit) consistently with their underlying instruments. It also pushed for explicit ATS authority for transactions involving tokenized securities. Fidelity further requested confirmation that broker-dealers can use blockchain for regulatory recordkeeping and on-chain settlement without being reclassified as clearing agencies. It cited a March joint policy statement from the Federal Reserve, FDIC, and OCC saying tokenized securities should face capital requirements aligned with traditional securities, and blockchain infrastructure should not change classification or risk weighting. Trader take: this is a push for reduced legal ambiguity and lower compliance risk, but it may not translate into immediate spot-demand for any single coin. Still, regulatory clarity could improve sentiment around tokenized-market infrastructure and institutional adoption over time.