Fairmint has submitted a comprehensive proposal to the SEC’s Crypto Task Force advocating for blockchain technology to transform private securities administration. The seven-step framework aims to replace manual processes with distributed ledger solutions, enabling real-time regulatory oversight and interoperability among transfer agents.
Central to the proposal is a shift from income-based to knowledge-based investor accreditation standards. This approach seeks to broaden access to private securities markets while maintaining robust investor protection mechanisms.
The framework highlights tokenization as a pivotal method to bridge traditional finance and digital assets. By enabling fractional ownership of private equity stakes, tokenization could enhance liquidity in the $5.3 trillion global private equity market while reducing administrative inefficiencies.
Fairmint’s proposal further recommends establishing a regulated DeFi sandbox to foster innovation within controlled parameters. This initiative aims to develop compliant infrastructure for modernizing securities administration through blockchain-enabled transparency and operational improvements.