Fidelity Investments has called for clearer rules on how crypto assets should be traded in regulated financial markets.
The company made this request in a new letter they issued to the U.S. Securities and Exchange Commission (SEC). The letter responds to ongoing discussions about how crypto assets can fit into the traditional financial system.
Source: Fidelity
According to Fidelity, the current financial market structure in the United States is strong enough and has developed over many years. It explained that there are already existing laws put in place. support fair trading, protect investors, and allow innovation.
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However, the company believes more guidance is needed as crypto assets become more common. It urged regulators to focus on protecting investors, ensuring transparency, and also developing systems to help prevent fraud and allow the market to grow.
Fidelity Points to the Need for Clearer Crypto Trading Rules
Fidelity stressed that brokers and dealers need clearer rules to handle crypto assets. These firms play a major role because they are the ones who operate the trading platforms and manage customer assets.
The company also commended the recent guidance the SEC is putting in place but said more clarity is still needed. It noted that better rules would help brokers and dealers safely offer crypto trading and custody services.
At the same time, Fidelity called for specific guidance on tokenized securities. These are digital versions of traditional assets like stocks that are issued on blockchain systems.
The firm explained that tokenized assets can be complex because their legal status is not always clear. It said trading platforms need certainty so they do not accidentally break securities laws. Fidelity also highlighted the need to balance traditional financial systems with blockchain-based platforms. It said both systems can exist together if they are properly regulated.
Blockchain platforms can offer faster transactions, lower costs, and greater transparency. However, they may also come with risks because they are not always subject to the same rules as traditional systems.
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