Loyalty Investments officially called US Securities and Exchange Commission Making updates to long-standing regulations governing broker-dealers engaging in cryptocurrency activities. In a detailed presentation dated March 20, 2026, the firm responded to Commissioner Hester Peirce’s request for public input on how national securities exchanges and alternative trading systems (ATS) should address the issue in December 2025. crypto assets.
The letter underlines LoyaltyThe view of America’s established financial market structure, based on the Securities Exchange Act of 1934,
Regulatory NMS and ATS oversight remains strong enough to responsibly incorporate digital assets while protecting investors and maintaining market integrity.
As one of the largest in the country financial services Among providers serving more than 50 million individuals and institutions, Fidelity operates many broker-dealer and investment advisor organizations directly affected by these issues.
The company deserves praise SEC Crypto Task Force He thanked it for its collaborative approach and emphasized that any update must continue to prioritize key objectives: clear disclosures for investors, fair secondary market trading, preventing manipulation and fraud, and supporting a competitive national market system.
The presentation provides four targeted recommendations to advance the regulatory framework.
First, Fidelity encourages regulators to expand existing staff guidance; thus, registered broker-dealers can safely quote, store and execute trades involving both secured and unsecured crypto assets.
This includes enabling paired trading between digital assets and traditional securities, based on recent disclosures published in 2025 and early 2026. custody applications and distributed ledger activities.
Second, the firm is calling for open standards that would allow ATS platforms to support secondary market trading of tokenized securities issued by third parties.
Tokenization structures vary widely, and broker-dealers often lack full visibility into the key economic characteristics of an asset.
Fidelity proposes “bright-line” rules that verify that a tokenized version of a security (e.g., representing a stock listed on the NMS) should receive the same regulatory treatment as the original.
Without such clarity, platforms run the risk of inadvertently violating restrictions on security-based swaps or unregistered offerings. Securities Act of 1933.
Third, Fidelity encourages: SEC Examining how traditional mediated venues can coexist with emerging disintermediated, blockchain-native platforms.
While decentralized systems promise faster payments, lower costs, and greater transparency, they currently lack many of the security measures required of regulated intermediaries.
The company recommends evaluating potential price differences between venues and considering whether enhanced risk disclosures should be mandatory for attendees using less controlled interfaces.
Finally, the letter calls for practical updates to outdated practices. compatibility Requirements to adapt to blockchain technology.
Fidelity recommends that broker-dealers be allowed to maintain records on distributed ledgers, consistent with the accommodations currently provided to transfer agents.
It also seeks approval to facilitate on-chain transactions. settlements For tokenized assets, it does not automatically classify a broker-dealer as a clearing house, provided the activity remains within traditional brokerage functions.
By addressing these areas, Fidelity SEC It can reduce market fragmentation, accelerate innovation, and expand access to tokenized investments without weakening investor protections.
The firm offered to provide additional data and participate in ongoing discussions. Crypto Task Force. This entrance It comes amid the rapid evolution of digital asset markets and signals strong industry support for thoughtful, principle-based regulatory modernization to keep pace with this evolution technology While preserving the fundamental strengths of U.S. capital markets.
