Fairmint proposed a seven-step concept of a 'blockchain framework' to the SEC for servicing private equity markets. It suggests creating a unified infrastructure standard for all market participants, organizing real-time visibility of operations through blockchain, and allowing investors to self-custody their shares with necessary compliance measures.
In addition, Fairmint calls for reforming the criteria for investor accreditation in favor of assessing knowledge and experience rather than pure income and capital, as well as establishing a regulated DeFi sandbox for testing new financial products.
The company notes that the market for private companies, valued at over $5.3 trillion, is managed using outdated Excel spreadsheets without automated clearing and settlement capabilities.
