Fidelity Investments has called on the U.S. Securities and Exchange Commission (SEC) to enhance the regulatory framework governing broker-dealers' crypto activities on alternative trading systems (ATS). In a letter dated March 22, Fidelity emphasized the need for comprehensive rules for trading tokenized securities, including those issued by third parties. The asset manager highlighted the unique characteristics of tokenized instruments, such as their issuance structure and valuation models, which encompass various asset classes like stocks, real estate, and bonds. Fidelity also urged the SEC to address the regulatory gap between centralized and decentralized trading systems, suggesting reforms to existing reporting rules to accommodate the decentralized nature of DeFi platforms. Additionally, the company recommended that the SEC provide guidance on the use of distributed ledger technology for ATS operations and record keeping, aiming to facilitate the coexistence and development of both centralized and decentralized trading systems.