Fidelity Investments has formally called on the US Securities and Exchange Commission to make updates to longstanding regulations that govern broker-dealers engaged in cryptocurrency activities. In a detailed submission dated March 20, 2026, the firm responded to Commissioner Hester Peirce’s December 2025 request for public input on how national securities exchanges and alternative trading systems (ATS) should handle crypto assets.
The letter underscores Fidelity’s view that America’s established financial market structure—rooted in the Securities Exchange Act of 1934,
Regulation NMS, and ATS oversight—remains robust enough to incorporate digital assets responsibly while protecting investors and maintaining market integrity.
As one of the nation’s largest financial services providers, serving more than 50 million individuals and institutions, Fidelity operates several broker-dealer and investment-adviser entities directly affected by these issues.
The company praised the SEC Crypto Task Force for its collaborative approach and emphasized that any updates should continue to prioritize core goals: clear disclosures for investors, equitable secondary-market trading, prevention of manipulation and fraud, and support for a competitive national market system.
The submission presents four targeted recommendations to advance the regulatory framework.
First, Fidelity encourages regulators to expand existing staff guidance so registered broker-dealers can confidently offer, custody, and execute trades involving both security and non-security crypto assets.
This includes enabling paired trading between digital assets and traditional securities, building on recent clarifications issued in 2025 and early 2026 regarding custody practices and distributed-ledger activities.
Second, the firm requests explicit standards to allow ATS platforms to support secondary-market trading of tokenized securities issued by third parties.
Tokenization structures differ widely, and broker-dealers often lack full visibility into an asset’s underlying economic characteristics.
Fidelity proposes “bright-line” rules confirming that a tokenized version of a security—such as one representing an NMS-listed stock—should receive identical regulatory treatment as the original.
Without such clarity, platforms risk inadvertently violating restrictions on securities-based swaps or unregistered offerings under the Securities Act of 1933.
Third, Fidelity urges the SEC to examine how traditional intermediated venues can coexist with emerging disintermediated, blockchain-native platforms.
While decentralized systems promise faster settlement, lower costs, and greater transparency, they currently lack many safeguards required of regulated intermediaries.
The company suggests evaluating potential price gaps between venues and considering whether enhanced risk disclosures should be mandated for participants using less-controlled interfaces.
Finally, the letter calls for practical updates to outdated compliance requirements to accommodate blockchain technology.
Fidelity recommends permitting broker-dealers to maintain records on distributed ledgers, consistent with accommodations already granted to transfer agents.
It also seeks confirmation that facilitating on-chain settlements for tokenized assets does not automatically classify a broker-dealer as a clearing agency, provided the activity remains within customary brokerage functions.
By addressing these areas, Fidelity argues, the SEC can reduce market fragmentation, accelerate innovation, and broaden access to tokenized investments without weakening investor protections.
The firm has offered to provide additional data and participate in ongoing discussions with the Crypto Task Force. This input arrives amid rapid evolution in digital-asset markets and signals strong industry support for thoughtful, principle-based regulatory modernization that keeps pace with technology while safeguarding the foundational strengths of U.S. capital markets.