Fidelity Urges SEC to Fast-Track Crypto Market Integration

• Fidelity says U.S. market infrastructure can support crypto trading under existing laws without building new systems.
• Firm backs SEC Crypto Task Force efforts, stressing collaboration to address technical and regulatory challenges.
• Integration into regulated systems could expand access while maintaining investor protection and market integrity.

Fidelity Investments called on the U.S. Securities and Exchange Commission to accelerate crypto integration into regulated trading systems. In a formal response to the SEC Crypto Task Force’s request for information, Fidelity backed efforts led by Commissioner Hester Peirce. The firm outlined how existing U.S. market infrastructure could support crypto assets under current regulatory frameworks.

Existing Market Structure Supports Expansion

Fidelity stated that U.S. financial markets already operate on a strong regulatory foundation. According to the firm, the National Market System connects thousands of participants across 29 exchanges and over 113 alternative trading systems daily.

This structure, governed by rules like the Securities Exchange Act of 1934 and Regulation NMS, enables efficient and transparent trading. Fidelity argued that integrating crypto assets into this system could improve market access and operational efficiency.

Moreover, the firm emphasized that existing frameworks already manage complex financial products. As a result, adapting them to include crypto assets would not require entirely new infrastructure.

Task Force Engagement And Industry Input

Fidelity addressed its response directly to the SEC Crypto Task Force. The group continues gathering feedback on how exchanges and trading systems can handle crypto assets. Commissioner Hester Peirce initiated the request to explore regulatory pathways for digital asset trading.

Fidelity supported the Task Force’s engagement with market participants. It noted that collaboration between regulators and industry stakeholders remains essential for addressing technical and operational challenges.

Additionally, Fidelity highlighted its own role across brokerage, investment management, and advisory services. The firm serves over 50 million individuals and institutions, alongside 13,500 intermediary firms.

Focus On Regulated Integration Approach

Fidelity’s response emphasized integrating crypto into existing regulated environments rather than building separate systems. It pointed to its broker-dealer, National Financial Services LLC, which operates an alternative trading system within the National Market System.

This approach aligns crypto trading with established investor protection and market integrity standards. Fidelity stated that regulatory clarity and structured integration could support broader participation without altering core safeguards.

The SEC will review submitted feedback as it considers future rules for crypto asset trading within national exchanges and alternative trading systems.