Fidelity urges SEC to take further action on cryptocurrency activities by broker-dealers

Fidelity Investments told the U.S. Securities and Exchange Commission on Friday that it should continue to improve the regulatory framework for broker-dealers to provide, custody and trade crypto assets on alternative trading systems (ATS). Fidelity said it is crucial for the U.S. Securities and Exchange Commission to develop a comprehensive regulatory framework and clear rules for trading tokenized securities, including rules for trading tokenized securities issued by third parties. Fidelity also urged the U.S. Securities and Exchange Commission to bridge the regulatory gap between centralized and decentralized trading systems. In addition, Fidelity recommended that the U.S. Securities and Exchange Commission issue guidance to allow broker-dealers to use distributed ledger technology for alternative trading systems and other record-keeping tasks.