TLDRFidelity Investments submitted formal correspondence to the SEC requesting comprehensive regulatory framework for digital asset operations by broker-dealersThe correspondence emphasized alternative trading system (ATS) requirements for handling blockchain-based securitiesFidelity advocates for regulatory standards enabling ATS platforms to facilitate trading of externally issued tokenized securitiesThe asset manager proposed modernized reporting frameworks accommodating decentralized platform architectureFederal banking authorities clarified that tokenized securities maintain identical capital treatment as their traditional counterpartsFidelity Investments has submitted a formal appeal to the United States Securities and Exchange Commission requesting enhanced regulatory clarity surrounding digital assets and blockchain-based securities. The correspondence reached the SEC’s Crypto Task Force on Friday.FIDELITY IS PUSHING THE SEC TO OPEN THE DOOR FOR CRYPTO MARKETSFidelity told the SEC it’s “critical” to create clear rules so broker-dealers can custody, trade, and support crypto assets on regulated platforms.They’re also pushing for: Clear standards for tokenized… https://t.co/w8a2I8NTZ9 pic.twitter.com/0XGEzIDaUg— CryptosRus (@CryptosR_Us) March 22, 2026The communication arrived as a direct response to SEC Commissioner Hester Peirce’s December inquiry. Peirce had solicited industry feedback regarding appropriate frameworks for national securities exchanges and alternative trading platforms managing cryptocurrency operations.Fidelity expressed general approval of the SEC’s initiative to modernize regulatory frameworks for emerging technologies. However, the firm emphasized that significant gaps in guidance persist across multiple critical areas.The asset management giant presented four primary policy recommendations. First among these was the continued development of regulatory standards governing broker-dealer engagement with digital assets.Fidelity acknowledged recent SEC guidance affirming that broker-dealers possess authority to maintain custody of both crypto securities and non-security digital instruments. While recognizing this progress, the firm stressed that substantial ambiguity remains regarding trading operations and custodial protocols.Regulatory Framework Needed for Tokenized SecuritiesA substantial section of Fidelity’s letter addressed tokenized securities specifically. These instruments represent traditional financial products—including equities, fixed income, real estate holdings, and private credit—that are either issued on or tracked through blockchain infrastructure.Fidelity advocated for definitive regulatory parameters allowing ATS platforms to facilitate transactions in tokenized securities originated by third-party entities. The firm emphasized that broker-dealers require certainty in asset classification processes without assuming disproportionate legal exposure.Additionally, the investment firm requested SEC confirmation that tokenized representations of conventional securities should maintain regulatory parity with their underlying assets. Such clarification could substantially minimize market friction between blockchain-based and traditional trading environments.Roberto Braceras, serving as Fidelity’s general counsel, emphasized that the SEC should evaluate operational frameworks allowing centralized and decentralized trading infrastructure to coexist effectively.Decentralized finance platforms inherently lack the centralized governance structures necessary to satisfy traditional exchange reporting obligations. Fidelity contended that existing regulatory requirements impose disproportionate compliance burdens on these alternative systems.Blockchain Integration and Federal Banking GuidanceFidelity additionally petitioned the SEC to authorize broker-dealers to implement blockchain infrastructure for regulatory recordkeeping purposes. The firm requested confirmation that utilizing on-chain settlement mechanisms would not subject broker-dealers to clearing agency regulatory obligations.SEC Chairman Paul Atkins has demonstrated openness toward continuous capital market operations and has permitted financial institutions to pilot tokenized trading initiatives.In a separate but related development, three federal banking regulators issued a coordinated statement in March. The Federal Reserve Board, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency jointly declared that tokenized securities remain subject to capital requirements identical to the assets they represent.The regulatory agencies clarified that the technological infrastructure employed for security issuance or trading does not modify capital treatment classifications.Commissioner Peirce has actively encouraged organizations pursuing tokenization strategies to maintain direct dialogue with regulatory bodies, representing a notable departure from previous enforcement-focused regulatory approaches.The post Fidelity Calls on SEC to Establish Comprehensive Crypto Asset Regulations appeared first on Blockonomi.