Fidelity Pushes for SEC Rules on Tokenized Asset Trading

Fidelity Investments has formally petitioned the U.S. Securities and Exchange Commission to modernize regulatory frameworks to better accommodate tokenized asset trading. General Counsel Roberto Braceras highlighted the friction between centralized and decentralized trading venues, noting that current SEC reporting requirements are incompatible with disintermediated blockchain systems lacking a central authority. Fidelity proposes that the SEC issue specific guidance allowing broker-dealers to utilize distributed ledger technology for alternative trading system recordkeeping to alleviate these operational burdens. This initiative aligns with a broader shift in regulatory sentiment, as SEC Chairman Paul Atkins has signaled support for 24/7 capital markets and blockchain experimentation. Furthermore, the Federal Reserve, FDIC, and OCC have clarified that tokenized securities remain subject to existing banking capital requirements regardless of the underlying issuance technology. These developments are critical for the RWA market as they address the legal infrastructure necessary to bridge traditional finance with decentralized ledger systems. By seeking to harmonize reporting standards, Fidelity aims to facilitate a more seamless integration of tokenized equities, debt, and real estate into the regulated financial ecosystem.