Key Highlights
- Fidelity submitted recommendations to the SEC Crypto Task Force on March 20, 2026, calling for clarified rules so brokers can handle crypto safely and efficiently.
- Tokenized assets need clear status to avoid legal confusion and smooth platform trading.
- SEC guidance and Fidelity proposals aim to balance innovation with investor protection.
The third-largest asset manager in the United States Fidelity Investments has asked the U.S. Securities and Exchange Commission (SEC) to make rules clearer for broker-dealers dealing with digital assets. The firm sent its recommendations to the SEC Crypto Task Force on March 20, 2026, after the agency requested input on how national exchanges and alternative trading platforms handle crypto.
Fidelity emphasized the need for regulatory certainty so broker-dealers can transact and custody digital assets within compliant frameworks. “We commend the Task Force’s proactive efforts with stakeholders and its commitment to fostering responsible innovation while safeguarding market integrity and investor protection,” the firm noted.
While supporting the SEC’s general approach, Fidelity raised concerns about tokenized securities. Sometimes, brokers and intermediaries cannot fully see how a digital asset is structured, making it hard to classify correctly. The firm said regulators should clarify when a tokenized asset carries the same status as the original security.
Clear guidance would let platforms handle trades more smoothly and avoid legal confusion. Fidelity also looked at how blockchain-based systems could work alongside traditional brokers. These systems could speed up settlements and cut costs, but gaps in oversight still pose risks.
Operational frictions and market development
Fidelity also pointed out practical challenges in using blockchain under current rules. It said unclear definitions around recordkeeping and settlements could create extra regulatory headaches for broker-dealers.
“Confirmation on this point is critical to enable broker-dealers to support on-chain settlement activity without regulatory uncertainty and to facilitate the orderly development of these markets,” the firm wrote.
The submission highlights the growing need to balance innovation with protecting investors as the U.S. digital asset market develops.
Regulatory context and industry implications
The SEC recently released guidance creating a clear system for classifying crypto assets. It groups them into digital commodities, collectibles, tools, stablecoins, and digital securities, showing which ones fall under securities law.
SEC Chairman Paul Atkins also criticized the agency’s past approach, saying relying too much on enforcement pushed innovation overseas. “When innovators cannot discern fit-for-purpose rules or when they face the prospect of a subpoena as the response to good faith efforts to comply, the rational response is to build elsewhere,” Atkins said.
In this context, Fidelity’s recommendations aim to help U.S. markets grow safely, giving brokers clearer ways to handle digital assets.
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