Crypto-native companies are ramping up efforts to influence regulatory guidance on digital asset transactions. Recently, Fairmint proposed a new framework to the SEC.
Fairmint's Proposals to SEC
Fairmint submitted a seven-part proposal to the SEC's Crypto Task Force aimed at standardizing infrastructure to enhance interoperability across transfer agents. They propose introducing real-time regulatory observability through blockchain and enabling investor self-custody with compliance safeguards. Additionally, Fairmint calls for a shift to knowledge-based accreditation standards and the establishment of a regulated DeFi sandbox.
Growing Investments in Private Equity
According to S&P Global, the size of the global private equity market reached $5.3 trillion in 2023, with expectations to grow to $6 trillion by the end of 2024. Fairmint points out that private companies rely heavily on costly spreadsheet software lacking settlement capabilities, unlike public markets, which offer more available options.
Tokenization Gains Attention
The SEC is exploring tokenization possibilities in traditional and digital markets. Retail trading platform Robinhood is planning to create a blockchain network for trading US-listed stocks aimed at European investors. CEO Vladimir Tenev highlighted that tokenization, including private equity, will be the company's next focus.
Fairmint's proposals and the growing interest in tokenization underscore the need for regulatory and infrastructural modernization to support a new era in private capital markets.
