Fidelity Urges SEC To Integrate Crypto Into Stock Trading Systems

Steady attention without excessive speculation.

Fidelity’s Role in Crypto Integration

Fidelity Investments has been a pioneer among traditional asset managers in bridging crypto with mainstream finance. The firm launched its institutional crypto custody and trading platform, Fidelity Digital Assets, in 2018 and became one of the first major brokerages to offer Bitcoin in 401(k) retirement accounts in 2022. It further expanded by launching the Fidelity Wise Origin Bitcoin Fund (FBTC) and Ethereum Fund in 2024, which quickly amassed tens of billions in AUM and set the stage for deeper integration of digital assets into existing brokerage infrastructure.

This latest comment letter to the U.S. Securities and Exchange Commission Crypto Task Force continues a pattern of repeated advocacy. Fidelity has submitted similar formal letters and testimony in recent years, including strong support for spot ETF approvals and calls for clearer rules around tokenized securities and broker-dealer custody. When the U.S. Securities and Exchange Commission approved spot Bitcoin ETFs in January 2024 following Fidelity’s lobbying efforts, Bitcoin surged more than 120 percent in the following months, while the new products drew record institutional inflows exceeding 56 billion dollars in their first year.

Fidelity’s Crypto Milestones

Fidelity’s Specific Proposal

Fidelity is specifically requesting that the SEC permit registered broker-dealers to custody and trade crypto assets directly on Alternative Trading Systems (ATS). This would let investors manage Bitcoin, Ethereum, and other digital assets alongside stocks and ETFs inside a single brokerage account, eliminating the need for separate crypto wallets or platforms.The 12-page comment letter stresses the importance of unified settlement cycles, enhanced investor protections, and reduced operational friction. Fidelity argues that the current fragmented system limits mainstream adoption and increases security risks for everyday users.

What Readers Should Watch Next

• SEC’s formal response and any proposed timeline for rulemaking on broker-dealer crypto integration.
• Bitcoin and Ethereum price action in the coming days following the increased institutional pressure.
• Whether other major firms like BlackRock, Vanguard, or Charles Schwab submit similar comment letters.
• Fidelity’s next announcements on pilot programs or expanded crypto features inside retail brokerage accounts.

The SEC has not yet responded to Fidelity’s latest proposal. While any rulemaking process could take months or longer, the move highlights increasing institutional demand for unified infrastructure across traditional and crypto markets.