TLDR
- Fidelity submitted a formal letter to the SEC seeking clear rules for crypto market infrastructure.
- The firm asked the SEC to define standards for tokenized securities under existing laws.
- Fidelity urged regulators to update reporting requirements for decentralized finance platforms.
- The letter stated that tokenizing a security does not change its legal status.
- Issuer-sponsored tokens provide voting rights, while third-party tokens often offer only price exposure.
Fidelity submitted a formal letter to the SEC outlining demands for clearer crypto market infrastructure rules. The firm called for defined standards on tokenized securities, revised DeFi reporting requirements, and guidance on distributed ledger recordkeeping. The request targets regulatory barriers that limit institutional participation in digital assets.
Fidelity Urges Clear Rules for Tokenized Securities and DeFi
Fidelity asked the SEC to define standards for tokenized securities under existing securities laws. The firm stated that tokenizing an asset changes its format, not its legal status. It added that a security remains a security after it moves onto a blockchain.
However, Fidelity said uncertainty persists over the rights attached to tokenized holdings. Issuer-sponsored tokens link directly to official shareholder registers and grant full voting rights. In contrast, third-party tokens often provide price exposure only and increase counterparty risk.
Fidelity also addressed decentralized finance reporting obligations in its letter. The firm said current financial reporting rules rely on centralized institutions. It urged the SEC to update frameworks because decentralized platforms lack a central reporting authority.
The letter focused on institutional access rather than retail participation. Fidelity said large capital allocators require legal clarity before entering the market. Estimates project up to $5 trillion in institutional capital could be unlocked by 2026 under a clear U.S. framework.
Compliance spending continues to rise under new U.S. and MiCA regimes. Firms now allocate between 20% and 30% of budgets to regulatory and audit requirements. Fidelity researchers also reported that Bitcoin showed limited price movement throughout 2025.
The researchers forecast that traditional money managers could enter crypto markets in 2026. They stated that infrastructure development will determine the pace of that transition. The firm linked regulatory clarity directly to operational readiness.
Market Data Shows Ethereum Leads as Stablecoin Value Reaches $300.79 Billion
Kraken’s parent company, Payward, announced work with Nasdaq to build tokenized stock and ETF infrastructure. Payward also became the first crypto-related firm to access the Federal Reserve payment system. These developments reflect ongoing integration between traditional finance and digital asset platforms.
Major exchanges expanded offerings beyond cryptocurrencies into tokenized equities and commodities. Infrastructure for broader asset exposure continues to expand across networks. As a result, fresh capital entered the market under evolving regulatory frameworks.
Data from RWA.xyz shows U.S. Treasury debt leads tokenized real-world assets at $11.84 billion. Commodities follow at $5.06 billion, and asset-backed credit stands at $3.15 billion. Real estate accounts for $292 million despite frequent projections about growth potential.
Ethereum holds $15.3 billion in distributed real-world asset value across networks. BNB Chain follows with $3.2 billion, while Solana records $1.7 billion. Stellar reports $1.4 billion in distributed value across tokenized assets.
Flow data over the past 30 days shows Ethereum gained $845 million in net inflows. BNB Chain added $808 million, while Solana recorded $398 million in inflows. XRP Ledger lost $68 million, and Liquid Network declined by $156 million.
Stablecoin value across tracked networks totals $300.79 billion, down 2.4% month over month. Meanwhile, the holder count rose to 239.36 million, reflecting a 5.05% increase. The data highlights the current distribution of assets across blockchain networks.