Fairmint, a registered SEC transfer agent and leading platform for onchain securities, has submitted a detailed seven-point policy proposal to the U.S. Securities and Exchange Commission’s (SEC) Crypto Task Force.
The framework outlines actionable steps to modernize the $6 trillion U.S. private securities market using blockchain infrastructure.
Currently, the private market operates without the standardized regulatory oversight seen in public markets. Many private companies manage billion-dollar cap tables using basic spreadsheet tools and unregulated vendors. This stands in stark contrast to public companies, which benefit from robust systems provided by the DTCC and licensed transfer agents. As a result, inefficiencies, compliance gaps, and friction persist across the private sector.
In response, Fairmint’s CEO, Joris Delanoue, explained that the proposal reflects years of work to bridge the technological and regulatory divide between public and private markets. He noted that while public firms have access to institutional-grade infrastructure, private firms are often left to operate with outdated tools, which limits their growth and compliance capacity.
To address this, Fairmint’s policy framework recommends seven major reforms. These include the adoption of interoperable protocols for infrastructure standardization, real-time observability tools for regulators through observer nodes, and investor self-custody systems with built-in compliance. The proposal also advocates for a shift to knowledge-based accreditation standards, regulatory clarity for smart contract-based broker-dealers, and the creation of a controlled DeFi sandbox to support innovation. Additionally, it calls for direct, protocol-based settlement mechanisms to replace legacy intermediaries.
The submission delivered to SEC Chairman Paul Atkins and Commissioner Hester Peirce is grounded in Fairmint’s practical experience. The company currently processes over $1 billion in onchain equity transactions and operates within existing regulatory guidelines. It has made its foundational Open Cap Table Protocol open-source to encourage broader adoption across the industry.
Meanwhile, in a related development, the SEC has formally withdrawn several proposed rules introduced during the Biden administration. Among those shelved are key regulations aimed at tightening oversight of cryptocurrency custody and DeFi platforms, signalling a potential shift in regulatory tone.
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