Fidelity has recommended to the SEC that the regulatory framework for crypto assets be improved and that on-chain systems be integrated into the securities market.

Fidelity Investments submitted comments to the U.S. Securities and Exchange Commission (SEC) Crypto Assets Working Group, recommending the integration of crypto asset trading within the existing regulatory framework, guided by the core principles of the Securities Exchange Act. The recommendations include further refining the regulatory framework for broker-dealers to offer, hold, and trade crypto assets; issuing guidance to support alternative trading systems (ATS) in tokenized securities trading and relying on the inherent properties of assets; assessing the evolution and coexistence of mediated and decentralized trading venues; and revising rules to promote the integration of on-chain systems into the securities market, including allowing the use of distributed ledger technology for record keeping and clarifying that on-chain settlement should not be considered a "clearinghouse."