Fidelity Urges SEC to Strengthen Broker-Dealer Rules for Tokenized Securities Trading and Custody
Tokenized securities put interests in real-world assets such as stocks, bonds, REITs and private credit onchain. However, holders’ rights vary across issuance structures, and the instruments may constitute securities or security-based swaps. Fidelity Investments said traditional finance will continue to face legal gaps when connecting with onchain markets unless the U.S. Securities and Exchange Commission standardizes trading, custody and capital rules.
On March 20, 2026, Fidelity Investments responded to a request for input issued earlier in the month by the SEC’s Crypto Task Force. It called for broker-dealers to be explicitly permitted to offer, custody and trade crypto assets through alternative trading systems, including tokenized securities issued by third parties. Fidelity also advocated updating DeFi reporting rules to bridge centralized and decentralized venues. The submission was a regulatory proposal and involved no transaction amount.
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The history behind this eventSEC Advisory Committee Backs Tokenized Securities, Proposes Regulatory Safeguards
The U.S. Securities and Exchange Commission's Investor Advisory Committee has endorsed securities tokenization, seeking to replace traditional settlement models by recording and trading shares on blockchains. The shift could enable near-instant, round-the-clock trading and reduce intermediary costs, but also raises concerns about investor protection, market fairness and information transparency.
As of July 19, 2026, the committee had voted to support the policy and recommended mandatory reporting requirements, fair-trading safeguards and rules governing third parties that put shares on-chain. SEC Chair Paul Atkins confirmed that the agency was developing guidance for tokenized stocks. No formal release date, eligibility thresholds or related amounts have been announced.
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