Fidelity Pushes for Crypto Rules as SEC Signals Major Policy Shift

Fidelity Demands Broker-Dealer Rule Clarity

Financial giant Fidelity has formally urged the U.S. Securities and Exchange Commission (SEC) to establish clear rules for broker-dealers managing digital assets. The request presses the regulator for specific guidance on the offering, custody, and trading of cryptocurrencies, a move that would pave the way for traditional financial institutions to expand their services into the asset class. By seeking a defined regulatory framework, Fidelity aims to resolve long-standing ambiguity that has prevented many heavily-regulated firms from fully participating in the crypto market, potentially unlocking significant institutional capital and improving market infrastructure.

SEC Proposal Excludes Crypto from Key OTC Rule

Fidelity's push coincides with a significant and favorable shift in the SEC's approach. On March 16, the agency proposed an amendment to Rule 15c2-11, a regulation governing how broker-dealers publish quotes in the over-the-counter (OTC) market. The proposed change would limit the rule's scope to "equity securities," effectively excluding assets like Bitcoin and Ethereum that are not classified as such. This revision removes a potential compliance hurdle for quoting digital assets in OTC environments and provides greater certainty for liquidity providers. The proposal is now open for a 60-day public comment period before a final decision is made.

Safe Harbor Signals End of Enforcement-Led Era

The regulatory thaw deepened on March 18 when SEC Chair Paul Atkins floated a "safe harbor" proposal, marking a potential end to the agency's previous regulation-by-enforcement strategy. This framework would grant crypto projects a grace period to develop and decentralize without the immediate threat of securities law violations. Atkins also identified four asset categories—digital commodities, collectibles, tools, and payment stablecoins—as being outside the scope of securities laws. This clearer stance arrives as Wall Street's interest in tokenized assets accelerates, with the market for on-chain real-world assets like tokenized Treasuries now exceeding $24 billion. The combination of institutional demand from firms like Fidelity and a more accommodating SEC posture signals a foundational change for digital asset markets in the U.S.