Fidelity Urges SEC to Set Clear Rules for Broker-Dealers on Tokenized Assets

Overview

• Fidelity sent a formal letter to the SEC’s Crypto Task Force asking for concrete guidance on custody, trading, and reporting for digital assets.
• The firm asked the SEC to let alternative trading systems list and trade tokenized securities issued by third parties with clear classification rules for broker-dealers.
• Fidelity requested confirmation that a tokenized security keeps the same regulatory status as the original asset and asked to use blockchain recordkeeping without triggering clearing agency rules.
• The letter urged the SEC to update reporting frameworks for decentralized finance platforms because they lack a central operator to produce traditional disclosures.
• The request comes after joint SEC and CFTC guidance on token classifications and a Fed–FDIC–OCC statement on capital treatment, with industry estimates reporting that clarity could unlock up to $5 trillion in institutional capital by 2026.