submission<\/a> to SEC Chairman Paul Atkins and Commissioner Hester Peirce, Fairmint outlined operational challenges in private markets and proposed solutions that it claims can be implemented under current regulatory authority.<\/p>\nFairmint argues that much of the sector still operates on outdated infrastructure and relies on costly, spreadsheet-based systems with no native settlement capabilities, limiting efficiency and regulatory transparency. In contrast, public markets benefit from regulated infrastructure.<\/p>\n
The seven-part framework is expected to standardize infrastructure across transfer agents, provide real-time observability to regulators, and expand investor rights and access.<\/p>\n
Fairmint\u2019s proposal begins with a push to unify private market infrastructure through protocol-level interoperability, aiming to eliminate the fragmented systems that currently burden transfer agents.\u00a0<\/p>\n
To enhance regulatory oversight, it proposes blockchain-based observer nodes that would allow the SEC to monitor transactions in real time while preserving user privacy. Another key recommendation supports investor self-custody, enabling direct ownership of private securities with embedded compliance measures.<\/p>\n
<\/p>\n
The proposal also challenges traditional investor qualification standards by advocating for a knowledge-based accreditation model, replacing outdated wealth thresholds with competency assessments.<\/p>\n
To support new types of market activity, Fairmint outlines a non-custodial broker-dealer structure for smart contract-based intermediation and encourages the creation of a supervised DeFi sandbox for controlled experimentation.<\/p>\n
Lastly, Fairmint recommends replacing traditional clearing systems with a direct settlement architecture powered by smart contracts to streamline settlement and reduce reliance on intermediaries.<\/p>\n
By adopting its proposed framework, Fairmint argues the SEC could enhance market integrity and reduce administrative burdens while enabling innovation through secure, onchain processes.<\/p>\n
With regulatory momentum building around digital assets, Fairmint is among a growing number of firms advocating for policy reform. Under the Trump administration, the SEC has recalibrated its regulatory strategy, marked by the establishment of a dedicated Crypto Task Force to explore new policy approaches and modernize oversight frameworks.<\/p>\n
Since its formation, the Crypto Task Force has actively sought industry feedback and held a series of regulatory roundtables with various stakeholders, focusing on areas such as tokenization, decentralized finance, and the application of existing securities laws to blockchain-based systems.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
Onchain securities platform Fairmint has urged the United States Securities and Exchange Commission to adopt a blockchain-powered regulatory framework to modernize private equity markets. On June 16, Fairmint, which operates…<\/p>\n","protected":false},"author":1,"featured_media":2988,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3075","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/3075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=3075"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/3075\/revisions"}],"predecessor-version":[{"id":3076,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/3075\/revisions\/3076"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/2988"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=3075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=3075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=3075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}