Fidelity Urges SEC to Update Rules Blocking Broker-Dealers From Crypto

• Fidelity says unclear crypto rules block broker-dealers from trading and custody services.
• Tokenised assets create confusion, risking misclassification and potential regulatory violations for firms.
• SEC rules restrict blockchain recordkeeping for broker-dealers, unlike permitted transfer agents today.

Fidelity Investments has a message for the Securities and Exchange Commission: the rules are broken, the industry is ready, and the time for waiting is over.

In a formal letter submitted to the SEC’s Crypto Task Force on March 20, the firm, which manages money for more than 50 million people, laid out four specific problems with how crypto assets are currently regulated and told the agency exactly how to fix them.

Fidelity is essentially telling one of the world’s most powerful financial regulators that it has fallen behind, and that real money, real firms, and rea…

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