In a bid to modernise the non-public fairness markets, Fairmint, an on-chain securities platform, has urged the US Securities and Change Fee (SEC) to undertake blockchain framework-based regulatory protocols.
On 16 June 2025, Fairmint submitted an in depth seven-point proposal to the SEC’s crypto job drive, highlighting the quite a few methods during which know-how based mostly on a blockchain framework may modernise and change legacy administrative frameworks within the $6 trillion US non-public securities market.
Fairmint, a registered switch agent affiliated with the SEC, develops infrastructure for compliant on-chain securities. The company submitted its strategies to the SEC Chair Paul Atkins and Commissioner Hester Pierce, figuring out key operational hurdles in non-public markets.
It additionally introduced actionable options that it believes fall below the scope of the present regulatory frameworks. In its proposal, the securities platform has argued that non-public markets nonetheless largely rely upon outdated infrastructure, hampering operational effectivity.
Private markets run on incompatible spreadsheets and Web2 vendor databases,
costly walled gardens that by no means agree, not often join.Equity can’t transfer or be really owned; transfers stall for months, are dealt with manually, data conflict, compliance gaps widen.
— Fairmint (@FairmintCo) June 16, 2025
To complicate issues additional, these outdated infrastructures utilise costly spreadsheet-based methods that don’t have native settlement capabilities, limiting transparency.
Fairmint expects its seven-point coverage proposal to unify infrastructure amongst switch brokers and allow real-time oversight for regulators, which is able to broaden investor accessibility.
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Fairmint Proposes Implementing Protocol-Stage Interoperability To Unify Private Market Infrastructure
The outlined plan by Fairmint proposes to implement protocol-level interoperability in an effort to unify non-public market infrastructure. With its protocol-level interoperability in place, the company believes that the present fragmented methods can be handled, offering much-needed aid to switch brokers.
Furthermore, to reinforce regulatory oversight, Fairmint has proposed the implementation of blockchain-based observer nodes. If applied, it’ll permit the SEC to observe transactions in actual time whereas sustaining person privateness.
To permit direct possession of personal securities with inbuilt compliance measures, the securities platform recommended self-custody by traders.
Moreover, Fairmint has pushed for a knowledge-based accreditation mannequin as a problem to conventional investor qualification requirements. This goals to make competency assessments a normal, changing the outdated fashions of wealth threshold.
To foster market exercise, it has advocated for a non-custodial broker-dealer construction for sensible contract-based intermediation. Additionally, a Decentralised Finance (DeFi) sandbox has been recommended to securely execute experiments in a managed atmosphere.
Submitted on Could 30, our 7-point framework assaults that fragmentation head-on:
• protocol-level standardization
• real-time SEC visibility through Observer Nodes
• direct on-chain settlement with built-in compliance— Fairmint (@FairmintCo) June 16, 2025
Lastly, Fairmint has beneficial that the SEC implement a direct settlement structure as a substitute of the normal clearing methods. The direct settlement structure can be powered by sensible contracts to streamline settlements and reduce out pointless intermediaries.
In keeping with Fairmint, the implementation of those strategies will cut back administrative burdens with on-chain processes, fostering innovation.
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Key Takeaways
- Fairmint, an on-chain securities platform, has urged the SEC to undertake blockchain framework-based regulatory protocols for personal fairness markets
- Private fairness markets depend on outdated infrastructures that don’t have native settlement capabilities, additional limiting transparency.
- Fairmint has outlined its plan to implement protocol-level interoperability to unify non-public market infrastructure
The submit Fairmint Urges the SEC to Adopt Blockchain Framework for Private Equity Markets appeared first on 99Bitcoins.
