Fidelity urges SEC to clarify crypto trading regulations

Asset manager Fidelity has urged the U.S. Securities and Exchange Commission (SEC) to continue establishing a regulatory framework that would allow broker-dealers to handle and trade cryptocurrencies via Alternative Trading Systems (ATS). According to Cointelegraph, Fidelity stated in a letter that it is crucial to create a comprehensive regulatory framework and clear rules for trading security tokens issued by third parties. The firm also stressed the need to address the regulatory gap between centralized and decentralized trading systems. Fidelity argued that existing regulations require a complete overhaul for decentralized platforms, as the nature of DeFi makes it difficult to apply the SEC's current reporting obligations.