According to Cointelegraph, crypto-native companies are ramping up efforts to influence regulatory guidance on digital asset trading. On Monday, transfer agent Fairmint presented a framework to the SEC's crypto task force aimed at addressing outdated and fragmented backend infrastructure issues in private securities management.
Fairmint's seven recommendations include standardizing the infrastructure of transfer agents, achieving real-time regulatory visibility through blockchain, and enabling investor self-custody under compliance safeguards. It also suggests shifting to knowledge-based certification standards away from traditional income and net worth thresholds and establishing a regulated decentralized finance (DeFi) sandbox.
According to S&P Global data, the global private equity market size reached $5.3 trillion in 2023 and is expected to grow to $6 trillion by the end of 2024. Fairmint states that the private equity industry heavily relies on expensive spreadsheet software, while public markets have more options.
The SEC's crypto task force is exploring regulatory paths at the intersection of traditional and digital assets. The agency recently held two key regulatory roundtables to gather industry feedback on tokenization and decentralized finance. Financial companies are also exploring the tokenization of public companies.
