Fidelity Investments has submitted recommendations to the U.S. Securities and Exchange Commission's (SEC) crypto asset working group, advocating for the integration of crypto asset trading within the existing regulatory framework guided by the core principles of the Securities Exchange Act. The firm suggests enhancing the regulatory framework for broker-dealers offering, custodying, and trading crypto assets. Additionally, Fidelity calls for guidance to support alternative trading systems (ATS) in conducting tokenized securities transactions, evaluating the evolution and coexistence of intermediated and decentralized trading venues, and revising rules to incorporate on-chain systems into the securities market. This includes allowing the use of distributed ledger technology for record-keeping and clarifying that on-chain settlements should not be classified as clearing agencies.